New competition from TikTok in Indonesia sparked a downgrade for Sea Limited (NYSE: SE) stock on Monday, sending shares of the Singaporean e-commerce giant spiraling 7% lower through 10 a.m. ET.

As Reuters reported this morning, TikTok is trying to reenter the Indonesian e-commerce market by taking over local tech company GoTo's e-commerce business, Tokopedia. Shares of Sea Limited, which receives 67% of its annual revenue from Southeast Asia in general (and does 35% of its gross merchandise volume in Indonesia in particular), are suffering in response to this news.

TikTok was forced to close its own TikTok Shop e-commerce business in Indonesia in September after the nation passed a law banning online shopping via social media platforms, but TikTok couldn't stay away. This morning the company announced it will buy 75% of GoTo's Tokopedia for $840 million, and then invest hundreds of millions of dollars more building out the e-commerce business -- growing its total investment to $1.5 billion.

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Source Fool.com