Today: 1 June 2025
8 June 2021
2 mins read

Beijing clamps down freewheeling tech firms

Every week, Chinese regulators have been calling out tech companies for alleged offences…reports Asian Lite News

Claiming a crackdown on anti-competitive practices among Chinese internet giants, Beijing has ramped up a broader effort to clean up the operations of the country’s fast-growing and freewheeling tech sector.

Every week, Chinese regulators have been calling out tech companies for alleged offences, including inconsistent pricing, user privacy concerns and difficult working conditions, reported The Wall Street Journal (WSJ).

In May, China’s cyber regulator accused 105 apps, including short-video and job-recruitment apps, of illegally collecting and using personal data and ordered the companies to fix their problems within three weeks or risk legal action.

Chinese regulators have also met with ride-hailing services for potential mistreatment of drivers, while internet firms have been ordered to reform their data and lending practices. Delivery platforms in China have also come under the scanner over what the authorities view as deceptive trading practices.

China continues to crack down on social media content it deems ‘controversial’. Xiaohongshu, a popular e-commerce startup, is the latest to be probed by internet regulators after it posted a message on the Chinese microblogging site Weibo on the anniversary of the 1989 Tiananmen Square massacre and had its account shut down, WSJ reported.

Beijing has been infamous for using antimonopoly rules to curb the market influence of foreign firms, As it sought to nurture its own tech company, the scenario changed when financial-technology giant Ant Group’s initial public offering (IP) was canceled last year, days after businessman Jack Ma made a speech that infuriated the government leaders.

In April, regulators imposed a whopping USD 2.8 billion fine upon Alibaba, stating that it had abused its dominant market position by engaging in a controversial practice,. Such accusations have dogged China’s e-commerce industry for years, resulting in several public complaints and lawsuits.

For some companies, placating Chinese authorities is a matter of tweaking some app features, while others could suffer more if much of their profits rely on data collection and sharing, WSJ reported citing employees of five app companies.

Some employees said they have grown more cautious about compliance and anything that could be seen as going against regulation. ByteDance, whose short-video app Douyin was among those targeted for improper data collection, has been hiring compliance and legal experts, tasking them with reviewing user terms and various app features to check for rule violations.

Chinese regulators have also called on the nation’s citizens to help supervise the behaviour of tech companies Tech companies have responded with pledges to be good corporate citizens. (ANI)

ALSO READ: China in the dock as Uyghur victims reveal plight at London probe

Previous Story

Pak unemployment rates soar despite projected growth

Next Story

What to Expect From G-7 Summit?

Latest from -Top News

UAE aid for Gaza in global focus

Titled Hope Remains, the documentary brings to light the UAE’s leading role in providing vital aid and support to the people of Gaza. The International Humanitarian and Philanthropic Council has released a

Syria, Israel begin quiet talks

The announcement came just hours after Israeli warplanes reportedly carried out new airstrikes in Syria’s coastal provinces of Tartus and Latakia, hitting a range of military targets. Syria has confirmed the commencement

Gaza truce deal hits new snag

US says Hamas’ reply to the ceasefire plan was “totally unacceptable” and accused the Palestinian group of dragging the negotiations backward. The latest attempt to broker a ceasefire in Gaza has hit

IAEA flags Iran enrichment spike

The International Atomic Energy Agency (IAEA), in two separate but related reports, said Iran has boosted its uranium stockpile enriched up to 60% purity by nearly 50% since February. Iran has vehemently

World needs Dubai’s ambition: Morgan

Piers Morgan has hailed Dubai’s transformation as an example of what visionary leadership can achieve. British broadcaster Piers Morgan has praised the extraordinary ambition and vision of His Highness Sheikh Mohammed bin
Go toTop

Don't Miss

Baloch nationalists warn China against supporting Pakistan

Baloch fighters are seeking independence from Pakistan as they feel

Residents of Chinese city under lockdown barter dishwashing liquid for apples

Some residents under quarantine in the Chinese city of Xi’an