Tech

Tencent needs regulatory approval before launching a new app

People pass the Tencent sign at their headquarters in Shenzhen, Guangdong, China, on August 7, 2020.

David Carton | Reuters

Guangzhou, China — Tencent needs to get approval from Chinese regulators to send app updates, state broadcaster CCTV reported Wednesday.

This move happens after regulators have discovered that some of the apps created by China’s most valuable tech companies have violated data protection rules many times this year.

Approval for Tencent apps is currently suspended. China’s Ministry of Industry and Information Technology needs to check before releasing new apps or updates. According to CCTV reports, this can take up to 7 days without quoting the source.

In a statement, a Tencent spokeswoman said, “We are continuously working to enhance in-app user protection and regularly work with relevant government agencies to ensure regulatory compliance. Will continue to work and can be downloaded. “

Hong Kong’s Tencent shares rose more than 1% in the morning trading.

Over the past year, China has tightened regulations on its domestic technology sector, which has grown for many years almost unaffected by regulations. Beijing has introduced regulations in areas from antitrust law to how algorithms are used.

One of the biggest regulations passed this year was the groundbreaking personal data protection law. Regulators focus on how businesses collect and process data. The latest action on Tencent is part of that process.

This move is another blow to Tencent, who felt the impact of the crackdown by Chinese regulators. In August, regulators introduced a rule limiting children under the age of 18 to online video games three hours a week at designated times. At that time, Tencent said that a small portion of its revenue came from such players.

Crackdowns in other areas that favor the education sector have also weakened the advertising motivation that weighed on the company’s third-quarter earnings. Tencent’s third-quarter sales were 142.4 billion yuan, up 13% year-on-year. According to Reuters, this was the slowest quarterly revenue growth since its listing in 2004.

Tencent needs regulatory approval before launching a new app

Source link Tencent needs regulatory approval before launching a new app

Back to top button