Government's crackdown on algorithms in China
Companies have been asked not to create algorithms that attract people to spend on things that affect the public order.
China has issued guidelines related to creating algorithms for Internet companies. Companies have been asked not to create algorithms that attract people to spend on things that affect the public order. These guidelines are specifically for algorithms that suggest users click. China's Internet regulator has said that these steps have been taken to protect the privacy and data of users. The regulator said that internet companies should follow the principles of ethical conduct and fairness in business. According to the regulator, companies should not create algorithmic models that tempt users to spend a lot of money.
Apart from this, such algorithms should also not be used to create fake accounts. Users should also be given the option to easily turn off the feature of suggesting algorithms. Strict action on Internet companies The regulator said that feedback on this draft of guidelines can be given till September 26. This step has come at a time when China is taking strict action against its country's internet companies. The government has targeted and punished companies on issues ranging from monopolistic activities to consumer privacy.
A few months ago, the Chinese Consumer Association criticized Internet companies for misusing people's personal information and forcing people to make purchases. Since then the state media has repeatedly called for the control of such algorithms. Internet companies all over the world use algorithms to identify and recommend users' preferences. Such companies in China include major e-commerce companies Alibaba, taxi aggregator Didi, and Tiktok's proprietary company ByteDance. Tech regulation in China This move will have a direct impact on China's largest Internet companies. The shares of Alibaba Group in Hong Kong 5.
There was a decline of up to 2 percent. The company did not immediately comment on this. "As far as I'm concerned, this policy shows that tech regulation in China is not at the level at which the EU's data rules are, but rather at the level at which the EU's data regulations are," says Kendra Schafer, head of tech policy research at Beijing-based consultancy company Trivium China. China has also recently passed a data protection law which will come into force from September 1. According to the government, its aim is to protect the rights of internet users in cyberspace and to rein in the fast-growing internet industry of the country.