Tech firms told to step up security for key apps
Print Edition
Chinese tech companies including social media giant Tencent were ordered by regulators yesterday to clean up how their apps handle user information or face possible penalties.
The order is the latest in a series of crackdowns by authorities. Violators in earlier crackdowns have lost licenses or suffered other penalties that cut into revenue or depressed their company鈥檚 share price.
The industry ministry said 41 apps failed an examination following orders in July to ensure they comply with user data rules.
Violators include Tencent Holding Ltd鈥檚 QQ messaging app, Sina Corp鈥檚 Sina Sports, Sohu.com Ltd鈥檚 Sohu News and Xiaomi Corp鈥檚 Xiaomi Finance.
The ministry said violations included improperly collecting or using information about visitors to their services.
China encourages Internet and social media use but has steadily tightened controls on what companies can do with information they gather.
The ministry said companies must comply by December 31 or face 鈥渞elevant resolution work.鈥
Data protection rules say possible penalties include fines and loss of operating licenses.
China has the largest number of Internet users with more than 800 million people.
In 2014, Sina was stripped of its online publication license on charges of allowing lewd articles and videos to be posted on its service. Last year, Tencent鈥檚 share price slid after regulators slowed approval of new online games and proposed tighter oversight amid complaints young people were spending too much time playing them.
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