Zoom dumps China in hopes of securing Indian market
Zoom Video Communications, Inc will today end its operations in mainland China and instead begin licensing its technology directly to Chinese firms.
Since the outbreak of COVID-19, Zoom has skyrocketed in popularity worldwide. Mounting pressure from Chinese Communist Party (CCP) censors has prompted today’s exit, driving the company towards the Indian market.
As part of its rapid expansion across the sub-continent, the company is tripling the size of its existing Mumbai office as well as opening a new research and development branch in Bangalore. With no clear end in sight to the COVID-19 pandemic, Zoom hopes that capturing the Indian market will secure its future. Yet, the digital meeting platform faces challenges from competitor Telegram, which offers ultra-secure end-to-end encryption, as well as the Made in India initiative.
Expect Zoom’s exit from China to have a positive impact on its image in India as the application had previously been flagged by Indian intelligence after cooperating with CCP censors. Still, allegations that the platform unintentionally leaked personal information, a recent lawsuit by the US Consumer Watchdog alleging the company misled consumers regarding their encryption technology, and a market preference for domestic firms will all mar the company’s expansion. As such, it is unlikely Zoom will be able to find long-term, dominant success in the sub-continent.
Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.
