TikTok has signed an agreement to transfer its U.S. operations to a joint venture formed by three investors: Oracle, Silver Lake, and UAE-based MGX. The deal aims to ensure the social media platform continues to operate in the U.S. while addressing concerns regarding data security.

According to internal communications, the new U.S. venture will be 50% owned by the investor consortium, with each investor Oracle, Silver Lake, and MGX holding a 15% stake. ByteDance, TikTok’s China-based parent company, will retain a 19.9% stake, while ByteDance-affiliated investors will hold the remaining 30.1%. The new entity will operate independently and will have a seven-member board, the majority of whom will be American.

TikTok to Focus on Data Security and Algorithm Independence

This deal addresses U.S. concerns regarding the Chinese government’s access to American user data. TikTok CEO Shou Zi Chew stated in internal communications that the U.S. venture will have full authority over data protection, algorithm security, content moderation, and software assurance. This will ensure the platform complies with U.S. regulations.

An important condition of the deal is that U.S. user data will be stored in a local system managed by Oracle. This will ensure the data is protected from foreign interference. Additionally, TikTok’s algorithm, which powers its video feed, will be retrained using U.S. user data, thus ensuring the platform’s protection from external manipulation. This step is intended to alleviate concerns that the Chinese government could access data or manipulate content on the platform.

TikTok to Continue Managing Certain Commercial Activities

Chew also noted that TikTok’s global entities would continue to manage product interoperability and certain commercial activities, including e-commerce, advertising, and marketing. This sale comes after months of speculation regarding who would acquire Tik Tok’s U.S. operations. The U.S. Congress had called for Tik Tok to be sold to a U.S.-based company due to concerns that ByteDance’s Chinese ownership could lead to American user data being transferred to Beijing.

Facilitated by Washington, this sale resolves one of the largest points of tension between the U.S. and China. The agreement is seen as a significant step in reducing national security risks posed by foreign ownership of social media platforms. According to the deal, ByteDance will license its AI-based recommendation technology to the newly established U.S. TikTok entity. This technology is at the core of Tik Tok’s success and will operate securely through a partnership with Oracle.

TikTok Restructures E-Commerce and Data Teams

European Union finance ministers have agreed to impose a customs duty of €3 ($3.52) on low-value parcels entering the bloc, as part of measures targeting cheap Chinese-origin e-commerce imports from China-based online platforms such as Shein and Temu.

According to the regulation adopted by EU Member States, this represents a significant departure from the “de minimis” exemption applied to low-value parcels, which has so far allowed such shipments to be exempt from customs duties. EU institutions argue that this exemption has, over time, distorted competition and placed EU-based retailers at a disadvantage, as they are subject to stricter tax, labor, and regulatory obligations.

In a statement made on behalf of the 27 Member States, the EU Council said: “This temporary measure responds to the fact that such parcels currently enter the EU duty free, leading to unfair competition for EU sellers, health and safety risks for consumers, high levels of fraud, and environmental concerns.”

Taxation of Low-Value Parcels Was Planned to Enter Into Force in 2028

According to officials, the new duty is intended as a temporary solution ahead of a comprehensive customs reform for low-value parcels that was planned to enter into force in 2028. As part of this reform, the EU Customs Data Hub will be established to collect new customs data on all goods entering and leaving the Union within a single digital platform. This will enable customs authorities to monitor e-commerce flows more effectively, strengthen the fight against fraud, and increase product safety controls.

The rapid growth of cross-border e-commerce has also increased pressure on the EU to act earlier. While billions of low-value parcels enter Europe every year, this creates a significant administrative burden on customs authorities. At the same time, concerns are increasing regarding counterfeit products, environmental impacts, and consumer safety. EU institutions are of the view that the current system is inadequate in light of the scale and speed of digital trade.

The New Customs Duty Is Separate From the “Handling Fee”

It should also be noted that the €3 customs duty is separate from the EU-wide “handling fee” currently under discussion. While the customs duty aims to level competitive conditions, the handling fee is intended to compensate customs authorities for increasing inspection and processing costs. According to current proposals, this fee is expected to enter into force in the later months of 2026; however, its amount and exact implementation date will be finalized depending on negotiations between the European Parliament and the Council.

A New Customs Regime Will Be Implemented Once the EU Customs Data Hub Becomes Operational

Once the EU Customs Data Hub becomes fully operational, this temporary measure will be replaced by a permanent e-commerce customs regime. EU officials emphasize that, in the long term, this system will strengthen the customs union, protect European businesses and workers, and ensure that the growth of online trade does not come at the expense of fair competition and consumer safety.

For global e-commerce platforms and international sellers, this move is seen as a signal of a more stringent regulatory period in the European market, while for EU retailers it is considered an important step toward the long-demanded goal of “equal competitive conditions” in the digital marketplace.

Background of the New Customs Reform

At present, parcels valued below €150 that are sent directly from a third country to a consumer in the EU are exempt from customs duties. The European Commission proposed the removal of this exemption in May 2023 as part of the customs reform. The initial proposal envisaged the application of the measure from mid-2028. The Council adopted the removal of the exemption on 13 November 2025 and called for the measure to be applied earlier, in 2026.

In addition, in its communication on e-commerce in February 2025, the European Commission introduced the idea of a Union-level handling fee for goods imported directly to consumers. This fee was included in the customs reform proposal under the negotiating mandate adopted by the Council in June 2025. The handling fee is intended to compensate customs authorities for the increasing costs incurred in ensuring the release of those goods for free circulation.

According to the Council’s mandate, the handling fee is expected to enter into force in November 2026. The content of the fee and its exact date of entry into force are currently under discussion between the Council and the European Parliament within the framework of the ongoing customs reform proposal trilogue negotiations.

The Number of Low-Value E-Commerce Parcels Reached 4.6 Billion Last Year

Online platforms such as Shein, Temu, AliExpress, and Amazon Haul send clothing, accessories, and electronic products manufactured in factories in China directly to consumers at extremely low values. Due to the customs exemption, the number of low-value e-commerce parcels entering the Union doubled last year to 4.6 billion, with more than 90% of these parcels originating from China. Import volumes are expected to increase further this year.

Eight European Countries Call for Action Against Chinese E-Commerce Platforms

Dubai CommerCity participated in the first edition of the Global Forum on Digital Trade and Digital Platforms, organized by Ministry of Economy and Tourism in collaboration with the United Nations Commission on International Trade Law (UNCITRAL), as a key national partner shaping the future of digital trade.

Dubai CommerCity’s participation in this event builds on its role in supporting national digital trade legislation, having been adopted as a reference use case during the drafting of the UAE’s law on trading through modern technological means, alongside other national entities.

Dubai CommerCity: A Pioneering Model in Digital Trade

The Kingdom of Spain joined the UAE’s proposal to UNCITRAL to develop a model law for digital trade and platforms, using the UAE’s legislation as a baseline. UNCITRAL has launched the exploratory phase, highlighting Dubai CommerCity as a leading example of an advanced business ecosystem driving the growth of digital trade.

About the Global Summit on Digital Trade and Digital Platforms

The inaugural session of the Global Summit on Digital Trade and Digital Platforms, launched by the Ministry of Economy and Tourism in collaboration with the United Nations Commission on International Trade Law (UNCITRAL), featured six panel discussions and a roundtable meeting. The event witnessed wide participation from ministers, government officials, legal experts, private sector innovators, policymakers, and other stakeholders in digital trade and platforms from over 17 countries.

These sessions established a new roadmap for developing a comprehensive and competitive legislative framework for digital trade and platforms at both regional and global levels, leveraging the UAE’s technology-enabled trade laws and aligning with the rapid transformations of the digital economy.

Dubai CommerCity: The ideal hub for digital commerce businesses

European countries are uniting against ultra-fast fashion e-commerce platforms. Eight countries, led by France, have called for a mobilization from Brussels to address the challenges posed by third-country e-commerce platforms, particularly those based in China.

In a joint letter to the European Commission and member states, the eight countries Austria, Belgium, Spain, France, Greece, Italy, Hungary, and Poland urged the Commission to strengthen its collective response to what they perceive as “systemic risks” created by platforms like Shein, Temu, and TikTok Shop. The letter, sent to Brussels, emphasizes the need for the European Commission to take decisive action against unfair competition stemming from third-country e-commerce platforms.

“Additional Sanctions Should Be Imposed on Temu and AliExpress”

The European Commission has sent information requests to Shein, which could lead to an official investigation. This request for an inquiry was made by French Minister of Commerce Serge Papin, the initiator of the letter. During the Competition Council meeting in Brussels, Minister Papin stated that this investigation should be supported by temporary measures to mitigate the uncontrolled systemic risks arising from platforms like Shein. He also called for additional sanctions against Temu and AliExpress, urging further action in the ongoing legal proceedings.

Facing the possibility of failure at the national level, France is now calling on the European Commission to act. Earlier this month, the French government attempted to suspend Shein through an administrative procedure but was unsuccessful. A court ruling on the case is expected to be announced on December 19. Addressing systemic risks posed by large platforms falls within the European Union’s jurisdiction.

Call for a “European Tax” on Low-Value E-Commerce Packages

The signatory countries are also calling for strict enforcement of existing laws, such as the Digital Services Act (DSA), to protect consumers and businesses from risks such as illegal product sales or unfair commercial practices. They argue that coordinated efforts are needed to strengthen controls by customs and consumer protection authorities. Furthermore, they urge the European Commission to play a more active role, review current regulations, and, if necessary, enhance online platforms’ obligations.

Finally, the signatories are calling for the introduction of a “European tax” on low-value packages, a measure particularly planned by France at the national level. It is worth noting that EU finance ministers approved the removal of customs duty exemptions for small import packages in mid-November, with the new measure expected to come into effect in the first quarter of 2026.

France to Open and Inspect Every Parcel from Shein as Crackdown on Chinese E-Commerce Escalates

The Eurasian Economic Union (EAEU) has taken another significant step toward establishing unified rules for digital trade. The Council of the Eurasian Economic Commission (EEC) has approved a draft agreement that outlines regulations for e-commerce and updated customs thresholds.

Daniyar Amangeldiev, First Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic, participated in the EEC Council meeting via videoconference. During the session, the Council approved the draft Agreement on Electronic Commerce within the EAEU.

The approved draft aims to create a unified regulatory framework for e-commerce activities across all EAEU member states. The document introduces harmonized approaches to consumer protection, taxation, customs controls, and the movement of goods purchased online. Officials highlight that this step will provide a clearer and more predictable environment for both consumers and sellers.

Establishing Common and Transparent Rules for E-Commerce in the EAEU Internal Market

The agreement aims to facilitate mutual e-commerce within the EAEU, protect the rights and legitimate interests of participants, and define rules of interaction between them. The EEC Council established value thresholds allowing individuals to import e-commerce goods into the EAEU customs territory duty-free up to 200 euros.

The Council also set a unified customs duty rate for electronic goods purchased by individuals 5% of the item’s value, but not less than 1 euro per kilogram, excluding certain specific product categories. Additionally, the Council decided to introduce mandatory labeling for certain food products, perfumes and cosmetics, personal hygiene items, and household chemicals. Member states will independently determine the implementation date and specific procedures for labeling products subject to identification marking.

“Kyrgyzstan Played an Active Role in This Process”

Amangeldiev noted that the draft agreement represents significant progress in harmonizing the union’s digital trade ecosystem and will strengthen cooperation among member states. He emphasized that Kyrgyzstan played an active role in the process and that unified digital trade rules are essential for enhancing economic integration and improving the business environment.

Harmonizing Customs Exemption Thresholds for Cross-Border E-Commerce

One of the key elements of the draft agreement is the unification of customs exemption limits applied to cross-border e-commerce purchases. Currently, these thresholds differ from country to country, resulting in inconsistent processing of online imports. The new framework aims to simplify and standardize the handling of low-value shipments. The EEC Council stated that the proposed limits will strengthen oversight while maintaining convenient access to online purchases for consumers.

Supporting Long-Term Growth of E-Commerce

The draft agreement will now undergo further refinement by member states before it is submitted for final approval and signing. Officials note that the regulation aims to support the long-term growth of e-commerce and establish a more predictable regulatory environment across the region. Once adopted, the agreement is expected to streamline e-commerce processes, improve customs efficiency, and strengthen digital trade cooperation among EAEU member states.

Kyrgyzstan to Launch E-Commerce Park Supporting SMEs & Digital Infrastructure

The social e-commerce platform Taager, founded in Egypt and headquartered in Saudi Arabia, has officially entered Morocco by launching its operations in Casablanca. This move marks the company’s first expansion into North Africa.

Taager was founded in 2019 by Abdelrahman Sherief, Ahmed Ismail, Ismail Omar, and Mohammed Elhorishy. The company offers services such as product sourcing, warehousing, shipping, and customer delivery, enabling anyone to establish and grow their own social e-commerce business. This step represents the company’s first North African expansion following its presence in Egypt, Saudi Arabia, and the UAE.

Taager Aims to Make Online Selling More Accessible for Digital-Focused Entrepreneurs

The expansion targets Morocco’s rapidly growing e-commerce sector. Taager aims to make online selling more accessible for young, digital-focused entrepreneurs. Taager’s entry into Morocco reflects the increasing regional demand for low-barrier e-commerce tools. With its young population and rising digital transformation, Morocco represents a high-potential market for the company’s MENA expansion strategy. Earlier this year, Taager completed a pre-Series B funding round of $6.75 million, led by the Africa-focused tech investment fund Norrsken22.

“Our Goal Is to Reduce the Barriers Preventing Young People from Starting Online Businesses”

Taager Co-Founder Abdelrahman Sherief said, “Morocco brings together a connected young population and a strong digital ecosystem. Our goal is to reduce the barriers that prevent young people from starting online businesses.”

Taager’s Moroccan operations will be led by Salma Ammor, who has experience scaling digital ventures. Ammor will focus on providing Moroccan youth with the tools they need to accelerate their businesses. She summarises the company’s mission as follows: “Our aim is to equip young Moroccan entrepreneurs with accessible e-commerce tools that enable them to build and grow their own businesses.”

Increasing internet penetration, mobile-first shopping habits, and the rise of social commerce are turning Morocco into an attractive hub for e-commerce innovation in North Africa. Industry data shows that online spending in the Moroccan e-commerce market exceeds $1.6 billion annually, with expectations of double-digit growth through 2027. Much of this momentum comes from young sellers and shopping trends driven by social media.

The Netherlands is preparing to introduce a new handling fee on low-value e-commerce parcels arriving from outside the European Union, joining several other European countries that have recently taken similar measures. Governments across Europe are implementing such policies to relieve pressure on customs systems that are struggling under heavy workloads.

Dutch authorities are considering a fee ranging from €0.50 to €2 per item for products valued under €150. The initiative aligns with similar regulations announced by France, Belgium, and Luxembourg, which are expected to take effect in early 2026. The primary driver behind these measures is the surge of millions of low-value parcels entering EU countries mostly from Asian marketplaces, particularly in China.

According to Dutch public broadcaster NOS, policymakers in The Hague are concerned that if neighbouring countries apply their fees earlier, major e-commerce platforms may redirect shipments to Dutch hubs such as Schiphol Airport or the Port of Rotterdam to avoid the extra cost. This diversion could result in significant customs bottlenecks.

EU-Wide Fee on the Way, but Months Until Implementation

The European Union is developing an EU-wide handling fee as part of its broader customs reform strategy. However, the measure is not expected to take effect until November 2026. The Netherlands and the Benelux countries argue that this timeline is too late to alleviate the mounting pressure on national customs systems.

A European Commission spokesperson previously stated that the fee aims to eliminate the fragmented structure created by unilateral decisions of member states and to establish a “fair and harmonised framework.” Until then, however, many countries appear determined to move forward with their own national measures.

Warnings from Dutch Industry Representatives: Market Disruptions Likely

Air Cargo Netherlands (ACN), a leading industry association, supports an EU-wide harmonised fee but warns that implementing national fees too early could cause significant market distortions.

ACN notes that Dutch parcel carriers may not have sufficient time to adjust their systems to collect the new fees. The organisation also predicts potential job losses if shipments are rerouted through countries that do not impose such fees—such as Lithuania, the Czech Republic, or Hungary before being transported back into Western Europe.

In its statement, ACN said: “We recognise the need to strengthen customs capacity to manage the extraordinary rise in e-commerce volumes. However, a fee applied at the EU level is the only balanced and effective solution. National measures may shift air cargo flows to other countries, increase consumer costs, and weaken oversight of product safety.”

European Customs Systems Under Heavy Pressure Due to Asian Parcels

The surge in low-value e-commerce imports—mostly small parcels shipped from Asian marketplaces such as Temu and Shein—has exposed vulnerabilities in the EU customs infrastructure. Reports from multiple institutions, including the European Court of Auditors, highlight major challenges, including:

• Millions of low-value parcels with inaccurate declarations
• Insufficient staff for physical inspections
• Health and safety risks posed by unregulated goods
• Increasing pressure on postal and express delivery operators

France and Belgium have warned that without new fees and tighter controls, their national customs systems could “collapse under current volume growth.”

A Critical Year for Europe’s E-Commerce Regulations

The Netherlands’ proposal indicates that EU countries are becoming increasingly divergent in their responses to the e-commerce surge. While there is broad support for a harmonised solution, different implementation timelines may create new bottlenecks and market distortions across the logistics chain.

Until the EU’s comprehensive customs reform is fully implemented, European governments must navigate a delicate balance: protecting national logistics capacity while avoiding unintended economic consequences. The Dutch government is expected to announce its next steps in early 2026 following consultations with industry stakeholders.

EU to Eliminate €150 Customs Exemption in E-Commerce

NielsenIQ has released its “State of the Nation – Q3” report for the UAE and Saudi Arabia. While Modern Trade remains the largest channel, e-commerce is driving growth across both markets. According to the third-quarter “State of the Nation” report, the consumer basket continues to expand throughout the Middle East. However, spending behaviors in the United Arab Emirates (UAE) and Saudi Arabia vary significantly.

The report shows that the snacking category leads growth in the UAE, while Pet Care ranks first in Saudi Arabia, followed by snacking. In both markets, consumers exhibit a polarized shift toward value and premium segments, with the premium segment growing the fastest in the UAE.

“Contrasting Consumer Behaviors in Saudi Arabia and the UAE Present an Opportunity for Suppliers”

NielsenIQ APP General Manager Andrey Dvoychenkov stated: “Saudi consumers prioritize value in grocery shopping but are willing to spend on premium technology. In the UAE, spending is strong at both the entry-level and premium ends, offering suppliers opportunities to serve both segments. The contrasting consumer behaviors in the Saudi and UAE markets present a clear opportunity for suppliers: cater to value-oriented shoppers in certain categories while capturing premium demand in others.”

Product Variety in the Middle East Market Has Increased Significantly

Fast-Moving Consumer Goods (FMCG) and Tech & Durables (T&D) categories recorded strong growth in the 12 months leading up to September 2025. This growth is attributed to the notable increase in product variety entering the Middle Eastern market.

In the UAE, FMCG revenues increased by 7.7%, while the T&D sector grew by 6.9%.
A similar trend was observed in Saudi Arabia, where consumers increased their spending on food and technology products. FMCG revenues rose by 1.7%, and T&D registered growth of 4.5%.

Key highlights from the report include:

• Saudi consumers are prioritizing value in groceries while increasing their technology spending.
• UAE consumers are investing more in premium food baskets, while displaying relatively cautious behavior in tech categories.

Traditional Trade and E-Commerce Rapidly Expanding Their Roles in the Consumer Journey

Where consumers shop has become just as critical as what they buy. The Middle Eastern market clearly demonstrates the necessity of a strong omni-channel strategy across FMCG and T&D sectors.

According to NielsenIQ, Modern Trade remains the dominant channel for food and technology purchases, accounting for approximately 70% of FMCG sales in the region. However, both Traditional Trade and e-commerce are rapidly expanding their roles in the consumer journey. E-commerce gained two percentage points compared to last year, reaching 5.6% of FMCG sales in Saudi Arabia and 11.9% in the UAE. E-commerce ande traditional channels also remain significant, representing 23% of FMCG sales in Saudi Arabia and 18% in the UAE.

The Tech & Durables market similarly requires a strong omni-channel presence. Organized retail accounts for more than 75% of T&D revenues in the Middle East, while the online/e-commerce channel contributes nearly one-third of total sales.

How Are Consumer Dynamics Shaping in Saudi Arabia and the UAE?

In Saudi Arabia, a clear divergence exists between grocery and technology spending. In FMCG, consumers are increasingly opting for value segments compared to the previous year, while premium brands dominate T&D. This indicates that Saudi consumers focus on essential needs in groceries but are willing to spend more on high-end technology products.

Growing FMCG categories:

• Pet Care: +13%
• Snacking: +6%
• Beverages: +3%

In T&D, premium categories lead the market:

• Smartphones: +7%
• TVs: +2%
• Tablets: +6%

In the UAE, consumer behavior is more diverse across both FMCG and T&D. In FMCG, both value and premium segments grew by more than 20% year-on-year. In T&D, value (+3.6%) and premium (+7.5%) products outperformed the mainstream segment (+6.0%).

A Statista analysis warns that tariffs in the United States are not only a trade policy instrument but a force capable of reshaping the country’s e-commerce landscape over the next five years.

If high tariffs remain in place, the U.S. e-commerce market is expected to contract sharply. According to Statista, the tariff policies proposed for 2025 could lead to a $320 billion loss by 2029 compared with a free-trade scenario. The report estimates that U.S. online sales would reach $1.84 trillion by 2029 without tariff changes. Under a high-tariff regime, however, the figure would fall to $1.52 trillion, a decline of nearly 17%.

What Does Trump’s Scenario Mean?

Statista uses a model based on proposals by former President Donald Trump, which involve substantial tariff increases. In some categories, rates would triple, pushing U.S. tariffs to their highest level since 1969. Some countries may receive negotiated reductions China, for example, would see certain tariffs drop from 145% to 55%. Still, the overall tariff framework would significantly raise the cost of goods imported from Asia, Europe, and Latin America.

How Would Tariffs Impact E-Commerce?

The effects extend beyond price hikes. According to Statista:

• 76% of Amazon sellers and 71% of D2C brands expect higher product costs.
• More than 60% of surveyed companies plan consumer price increases.
• 44% of Amazon sellers are considering shifting production out of China.
• Fashion and home goods could face notable declines in global competitiveness.
• In fashion, the average tariff would jump from 1.83% to 12.55%.

A Strategic Test for the E-Commerce Sector

Statista’s findings show that tariffs could reshape every part of the value chain from importers and distributors to marketplaces and end consumers. For companies, success will depend on rapid adaptation, supply-chain diversification, and stronger value propositions in a higher-cost and more competitive environment. For consumers, the challenge will be maintaining access to competitive prices without compromising variety or quality.

US Tariff Ruling 2025: What It Means for E-Commerce Sellers?