Alibaba, Tencent Turn Over Key Data in China To Regain Regulatory Compliance

·1 min read
  • Alibaba Group Holding Limited (NYSE: BABA) and Tencent Holding Ltd (OTC: TCEHY) submitted the algorithm details of some of their products to China's top internet watchdog, Reuters reports.

  • The submission was a part of China's sweeping crackdown on the sector.

  • The internet platforms faced flak for abusing algorithms to invade user privacy and manipulate their choices.

  • The Cyberspace Administration of China (CAC) published a list of 30 algorithms used in some of the country's most popular apps, including Alibaba's Taobao, Tencent's Wechat, Meituan (OTC: MPNGY), ByteDance's Douyin, and Baidu, Inc (NASDAQ: BIDU).

  • In March, China launched new regulations for algorithm recommendation services and established a filing system requiring firms to disclose what they used in their apps.

  • China looked to forbid online addiction and any activity endangering national security by the move.

  • Separately, China investigated three former executives connected to the National Integrated Circuit Industry Investment Fund for alleged corruption charges.

  • China put at least five chip fund executives under probe for fraud in the past two months.

  • Beijing is under pressure to bolster its semiconductor industry as growing U.S. restrictions threaten its chip supply chain.

  • Price Action: BABA shares traded lower by 2.21% at $92.77 on the last check Friday.

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