China has issued far-reaching draft guidelines to tighten monitoring of the algorithms that technology companies use to run their businesses, in the latest step by Beijing to clamp on its internet sector.
Companies must follow corporate ethics and fairness principles, according to the Chinese Cyberspace Administration, and should not set up algorithm models that attract users to spend significant amounts of money or spend money in a way that may disrupt public order.
Users should be able to simply switch off algorithm recommendation services, according to the rules, giving consumers more control over an area of the internet that has also been targeted by authorities in the United States and Europe.
“As far as I’m concerned, this policy marks the moment that China’s tech regulation is not simply keeping pace with data regulations in the European Union but has gone beyond them,” said Kendra Schaefer, head of tech policy research at Beijing-based consultancy Trivium China.
The action will have a direct impact on some of China’s biggest tech firms, with Alibaba Group (9988.HK) shares tumbling as high as 5.2 percent in Hong Kong. The corporation did not respond to a request for comment right away.
Algorithms are utilized in a wide range of technologies, from facial recognition software to social media platforms, and tech corporations have been chastised around the world for failing to protect users’ privacy and allowing disinformation to proliferate.
Companies have been accused of using them to coerce people into sales and promotions in China, according to official media.
The action will have a direct impact on some of China’s largest tech businesses, with Alibaba Group shares tumbling as high as 5.2 percent in Hong Kong. The corporation did not respond to a request for comment right away.
Algorithms are utilized in a wide range of technologies, from facial recognition software to social media platforms, and tech corporations have been chastised around the world for failing to protect users’ privacy and allowing disinformation to proliferate.
Companies have been accused of using them to coerce people into sales and promotions in China, according to official media.
The White House has urged tech companies to change their algorithms to combat false information, singling out Facebook, while the European Union has prepared guidelines that threaten big tech companies with fines if they do not do more to combat unlawful content.
According to the CAC, under the draft standards, which are open for public comment until September 26, Chinese officials will be allowed to review algorithms and request corrections if they detect flaws.
