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Briefing

Beijing broadens tech crackdown with IPO rules, algorithm controls

The Cyberspace Administration of China published guidelines that would forbid companies from using algorithms that “encourage addiction or high consumption” and require them to give users the option to turn off algorithms. Also on Friday, the Supreme People’s Court and Beijing’s labour ministry condemned the grueling work hours at tech firms. Meanwhile, the government plans to introduce new rules banning companies with large amounts of sensitive consumer data from going public in the U.S. (Reuters, The Wall Street Journal)

Briefing

Beijing broadens tech crackdown with IPO rules, algorithm controls

By Catherine McIntyre
Aug 27, 2021
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The Cyberspace Administration of China published guidelines that would forbid companies from using algorithms that “encourage addiction or high consumption” and require them to give users the option to turn off algorithms. Also on Friday, the Supreme People’s Court and Beijing’s labour ministry condemned the grueling work hours at tech firms. Meanwhile, the government plans to introduce new rules banning companies with large amounts of sensitive consumer data from going public in the U.S. (Reuters, The Wall Street Journal)

Talking point: The measures add to Beijing’s months-long effort to rein in the tech industry’s growing influence in the country, following years of loose regulations. Over the past year, the government has pushed back against antitrust and data-security concerns. It removed ride-hailing firm Didi from app stores, citing concerns over its data security following its U.S. IPO. It has banned some education apps, including that of popular U.S. firm Duolingo, and has also penalized institutional investors over IPO pricing. Some companies have tried preempting regulatory changes. For instance, TikTok’s parent firm ByteDance recently ended mandatory six-day weeks every other week, amid backlash against a pervasive culture of long working hours in the tech sector.

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