The data collected by apps is related to the inter-personal information of the users, like background, interests, and more
In a bid to tighten the screws around user privacy, China is planning to follow something similar to the European Union’s guidelines around apps. These guidelines are designed to keep a close track of apps like TikTok and others, that track user behavior. The new move around China's data protection can significantly hurt the revenue of internet companies.
If the data protection policy is adhered to, China app users will have more control over the information that gets displayed on their screens, as the app will be required to notify the user before taking down their data.
Last week, China introduced new measures related to data security that aim to take control of users’ personal data to protect them and the nation, as well.
Article 23 of the China data security measure states,
“Using user data and algorithms to deliver news information or commercial advertisements shall conspicuously label them with the words ‘targeted’ and provide users with functionality to stop receiving information from targeted delivery.”
The new measures around China’s cybersecurity law will be a boon to Chinese users, as lately there has been sharp criticism on various policies of tech companies that does not ask for users’ consent before extracting data. The story doesn’t end here. Many companies collect user data just for the sake of making some extra money by selling it to others. This is disturbing on so many levels.
Everything has its ups and downs. The China data protection law news can be disturbing for companies who solely rely on user data. In a statement to TechCrunch, Michael Tan, partner at the law firm Taylor Wessing, said that this will have a drastic impact on companies that are into data crunching business.
The best example of data crunching companies is Bytedance. It’s the parent company of TikTok, a media app for creating and sharing short videos, and Jinri Toutiao, a Chinese news app. With its programmatic ads and Artificial Intelligence-driven sessions, the Beijing based company got a valuation of $75 billion.
Lately, Tencent and Alibaba have also started incorporating customized feeds into their products to gel up with their user base.
A couple of years back, China came up with a new set of Cybersecurity Laws to take a control over data that was communicated over online borders. However, many of Beijing's steps seemed unclear initially, but they were later rectified
To this, Tan added,
“So far there is no unified data protection legal framework in place, though the topic is addressed by various laws and regulations including the PRC Cybersecurity Law. This is quite different from many other jurisdictions like that of the E.U. where there is unified protection framework in place with primary focus on personal data and privacy protection.”
Over a broader perspective, China’s data protection laws will be beneficial for the country, as it will help in preventing fraudulent cases that are against the country’s business operation laws. But again, it will be a set back for companies whose offices are located globally.
With the new China data security law in sight, all the Chinese internet companies will be required to work on their policies and give users more space to breathe.
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