China tech crackdown: Beijing to tighten regulation on internet platforms that profit from teenage users
- The regulatory tightening comes as shares of Chinese game and live-streaming companies are being hammered in Hong Kong amid broader market volatility
- Beijing has already banned profit-making in off-campus tutoring to reduce the burden on students, and has limited video game playing time for teenagers
China’s cyberspace watchdog has unveiled new draft rules that will make it harder for Big Tech firms like Tencent Holdings and ByteDance to profit from video gaming, live streaming and social media services targeted at the country’s 180 million internet users under the age of 18.
The new draft regulation, published by the Cyberspace Administration of China (CAC) on Monday, marks the latest effort by Beijing to shield minors from internet services. China has already banned profit-making in off-campus tutoring to reduce the burden on students, and has limited video game playing time to three hours per week for teenage players on Fridays, Saturdays and Sundays.
The draft, which is soliciting public feedback until April 13, goes a step further to cover all online services, including gaming, live-streaming, audio and video as well as social media. According to the draft, all online service providers must set up a “youth mode” for their services, stating clear limits in terms of user time, content and functions.
Specifically, internet service providers are required to impose limits on the time minors can spend online, as well as put ceilings on all one-off purchases and accumulative daily spending, according to the draft.
The proposed changes come amid ongoing reports of underaged users overspending on internet services, ranging from charges billed to their gaming accounts to giving tips to live-streaming stars. A number of delegates at last week’s “two sessions” parliamentary meetings publicly lobbied the Chinese government to further restrict gaming time for minors.
The regulation aims to “strengthen the responsibility” of internet platforms when it comes to “the protection of minors online”, according to CAC, the watchdog that sets rules for online activities.
The latest regulatory tightening comes as shares of Chinese video game and live-streaming companies are being hammered in Hong Kong amid increasing volatility in the broader market.
