- Following the enforced separation of e-commerce, social commerce and social media, as stipulated under Regulation of the Minister of Trade No. 31 of 2023, the Director-General of Domestic Trade at the Ministry of Trade, Isy Karim ("Director-General"), has confirmed that Facebook, Instagram and WhatsApp recently submitted applications for business licenses for social commerce rather than e-commerce platforms. The Director-General explained that the three social media platforms, all of which fall under the umbrella of the Meta Group, were previously only registered as web portals and social media, meaning that they have not yet secured social commerce licenses.
- While these three Meta Group social-media platforms may soon be able to engage in commercial promotional media activities if they are ultimately successful in securing the required business licenses, said platforms will still not be permitted to facilitate transactions as they will not be officially categorized as e-commerce platforms. It has also been revealed that TikTok has yet to apply for either a social commerce or an e-commerce license, thus disproving the rumor that TikTok Shop is set to return this November.
- Ultimately, the Director-General is urging all platforms that engage in electronic trading transactions to secure relevant permits, including permits that are required in order to engage in e-commerce. In this regard, the Director-General has issued a statement affirming that the business licensing processes for securing said permits will be conducted through an online platform and will only take approximately two to three days, provided that all of the required documents are fully submitted. (ANT)
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