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China rolls out new regulation to rein in algorithms used on apps as Beijing continues to clip wings of Big Tech firms
- The new regulation, which was drawn up by four government agencies, will take effect on March 1
- Algorithms, which leverage artificial intelligence and big data generated by app users, have helped shape trends and online discussions in China
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China is rolling out a new regulation to rein in algorithms used on apps to recommend what consumers would like to read, watch, play and buy online, marking Beijing’s latest effort to bring the country’s Big Tech sector firmly in line with state policies.
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The regulation, which was published on Tuesday, will take effect on March 1. It was jointly drawn up by the Cyberspace Administration of China (CAC), the Ministry of Industry and Information Technology, the Ministry of Public Security and the State Administration for Market Regulation (SAMR).
App operators who extensively use algorithm recommendation in their platforms – including e-commerce giant Alibaba Group Holding, social media and video gaming market leader Tencent Holdings, TikTok owner ByteDance and on-demand delivery services provider Meituan – are directed by the new regulation to “promote positive energy” and allow consumers to decline personalised recommendations generated by their services. Alibaba owns the South China Morning Post.
Algorithms, which leverage artificial intelligence and big data generated by app users, have helped shape trends and online discussions in China, which has the world’s largest internet population as well as the biggest market for e-commerce, video gaming and smartphones.
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“Tech companies that use personalised recommendation mechanisms, such as those operating food delivery, customised content distribution and e-commerce platforms will experience the most impact from this new regulation,” said Ding Mengdan, a lawyer at Beijing Yingke (Hangzhou) law firm.
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While algorithm technology has helped promote economic development and broader internet use across China, it has also caused problems, such as using big data analysis to price products to the disadvantage of consumers
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