After some of Tencent’s products were accused of infringing on consumer interests, Chinese regulators asked the government to approve any new applications and application updates. This is the latest blow to China’s most valuable technology companies.
According to official media reports, China’s Ministry of Industry and Information Technology (MIIT) will temporarily conduct “technical tests” to ensure that Tencent’s apps meet its standards before the company can provide them to users.
The requirement has been issued shortly after China Introduce a new data protection law Restrict the way its technology companies store and process users’ personal information.
This year, the Ministry of Industry and Information Technology regularly announced a list of applications that different developers infringed on the rights and interests of users. Nine Tencent apps have been included in the ministry’s list, and China’s State Broadcasting Corporation stated that the company “is going against the industry’s adjustment style”.
This year, Tencent has become a target of the government as antitrust regulators target Tencent’s deal and the exclusive licensing deal of its music department.
Gaming is also one of Tencent’s core businesses, but in August China imposed As part of the crackdown, new restrictions on child gamers In this industry, they can only play three hours a week.
Regulatory Cloud undermined the company’s revenue growth for the three months to September, from 25 and 20% was recorded in the first two quarters.
Tencent confirmed the move by the Ministry of Industry and Information Technology in a statement on Wednesday and tried to reassure investors by saying that its existing products can still be used.
The company said: “We have been committed to enhancing user protection features in our applications, and regularly cooperate with relevant government agencies to ensure compliance.” “Our applications are still functioning normally and available for download.”
Chinese technology companies have experienced a year of regulatory turmoil, which can be said to start with the cancellation of the US$37 billion initial public offering of Ma Yun’s online financial company Ant Group in November last year.
Chinese President Xi Jinping is launching a new “Common Prosperity” Policy, Its goal is from social inequality to all aspects of consumer rights.
When Tencent announced its third quarter results, the company’s president Andy Lau Said In China and internationally, stricter supervision is the “new normal.” The company said that in previous attempts to surpass regulators, especially in gaming, it is “proactively” adopting new rules in its business areas. At the beginning of August, Tencent cut the game time of minors King of Glory, One of its flagship games.
Although children account for only a small portion of its sales, the move to limit the playing time of minors surprised some analysts, who considered it an “extremely strict policy.”