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China targets ByteDance to Tencent for abusing online content algorithms

China has kicked off a formal campaign to rein in the alleged abuse of algorithms by internet giants from ByteDance Ltd. to Tencent Holdings.

By: BLOOMBERG
Updated on: Aug 22 2022, 11:25 IST
Companies including ByteDance and Tencent have made tweaks to their products following Beijing’s effort to protect personal privacy.  (REUTERS)

China has kicked off a formal campaign to rein in the alleged abuse of algorithms by internet giants from ByteDance Ltd. to Tencent Holdings Ltd., taking aim at the way social media platforms serve up ads and content to hook users.

The Cyberspace Administration of China will conduct on-site inspections of firms and ask them to submit their various services for review, the internet watchdog said in a statement Friday. Large-scale websites, platforms and products with big influence will be targeted, it said, without naming any.

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The campaign is aimed at implementing and enforcing sweeping rules governing the industry’s use of algorithms to surface content for users, which took effect March 1. Regulators proposed the far-reaching restrictions back in August to forbid practices that encourage online addiction, as well as any activities that endanger national security or disrupt social order.

Tech industry algorithms have been at the heart of political controversies around the world. Facebook Inc. and Google have been accused of serving up news stories and videos that exacerbate political polarization and fuel violence. While the U.S. government has had limited success in forcing changes, Beijing’s regulators have substantial power. Since the end of 2020, the Chinese government has implemented a series of crackdowns against monopolistic practices and unfair competition in the technology industry.

In February, Beijing’s internet watchdog launched a website where algorithm providers who influence public opinion or mobilize the masses can submit their services for record-keeping.

Companies including ByteDance and Tencent have made tweaks to their products following Beijing’s effort to protect personal privacy, for example, by offering users a way to opt-out of AI recommendations on apps like video service Douyin and the messaging platform WeChat.

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First Published Date: 08 Apr, 23:14 IST

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