The regulatory landscape for online marketplaces is evolving rapidly across the globe. As they
redouble their efforts to hold platforms accountable for the content and commercial activities
they facilitate, lawmakers are essentially reimagining and redefining the platforms’ perceived
position in the supply chain.
TikTok, for example, has been criticized for allowing its algorithms to promote harmful content
and illicit products such as fake cosmetics, counterfeit perfumes, and unregulated prescription
drugs, despite its official policy to ensure product safety and prevent user harm. This scrutiny
escalated to the point where TikTok faced nationwide bans in the United States and Canada.
Proponents of the ban have cited national security concerns over its data practices and the
influence of its parent company, ByteDance, based in China.
In 2023, Canada had banned TikTok from all government-issued devices, citing unacceptable
risks to privacy and security. Late last year, the Canadian government ordered ByteDance to
dissolve its Canadian subsidiary after a national security review; the company is now seeking a
judicial review to challenge this decision. Canadian users continue to have access to the TikTok
app.
In the US, the situation with TikTok recalls the Beatles classic, “Hello, Goodbye.” In 2020,
President Trump signed an executive order with the intent to ban the app in the US, due to
potential national security risks. This led to legal challenges and discussions about divesting
TikTok's US operations. During his campaign, he reversed that position.
Upon a broad review and security assessment, President Biden prohibited the use of TikTok on
federal devices, then enacted the "Protecting Americans from Foreign Adversary Controlled
Applications Act," which mandated that TikTok's parent company, ByteDance, divest its U.S.
operations by January 19, 2025, or face a nationwide ban. The intent was to balance security
concerns without keeping users from accessing the platform.
After unsuccessful appeals, ByteDance temporarily ceased U.S. operations on January 19,
reinstating them when the new administration indicated that they might reverse the ban. On
January 20, 2025, President Trump signed an executive order delaying the enforcement of the
TikTok ban for 75 days, saying, “I would like the United States to have a 50% ownership
position in a joint venture.”
Actions like this represent a broader trend of lawmakers strengthening requirements for how
online marketplaces and platforms handle user-generated content, user data, and commercial
transactions. This collective shift highlights a broader global consensus on the importance of
responsible and transparent practices in fostering sustainable ecommerce growth.
The counterfeit products originating from Asian online marketplaces constitute a substantial
share of the global trade in fake goods, an economic threat that cannot be ignored. And the
potential impact on consumer safety underscores the problem even more. Therefore, regulators are developing creative strategies to tackle the influx of low-cost products entering domestic
markets.
The groundswell of global regulation demonstrates a unified determination: holding platforms
accountable for their role in digital commerce is an essential part of protecting people and the
global economy.
Now, more than ever, marketplaces must be aware of the regulations that will impact them and
be prepared for increased requirements for compliance.
To delver deeper into regulatory trends faced by marketplaces in 2025, download the EverC
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