Chinese regulators tighten grip on live-streaming e-commerce, intensifying scrutiny on tech

China’s internet watchdog and six other regulators have jointly released new rules to regulate live streaming in the country’s booming e-commerce sector, set to go into effect on May 25, in Beijing’s latest move to tighten oversight of the powerful digital economy.

Live-streaming service providers will be required to create a list specifying the categories of products and services that are either unlawful or unsuited for sales through live-streaming, the Cyberspace Administration of China (CAC) said on its official website on Friday.

Under the new rules – also promulgated by the Ministry of Public Security and the State Administration for Market Regulation (SAMR), among others – behaviours such as peddling fake products, falsifying view numbers, promoting pyramid schemes, and engaging in gambling and fraud would be deemed illegal and banned.

Platforms will need to hire professional moderators to “maintain the safety of live-streaming content”, according to the rules. A blacklist system should be established to block anyone, including account holders and live streamers, who seriously violate the regulations.

“The rules aim to regulate the internet market order, protect the legitimate rights of the people, promote the healthy and orderly development of emerging business models, and create a clean cyberspace,” the CAC said.

Live streaming has become an increasingly popular way to sell goods to online shoppers in China who have grown more accustomed to e-commerce during the Covid-19 pandemic, when many stayed home and worked remotely.