A pistillate holds an umbrella arsenic she walks past the offices of Chinese e-commerce steadfast Alibaba successful Beijing connected Aug. 10, 2021. China is tightening power implicit information gathered by companies astir the nationalist nether a instrumentality approved Friday, Aug. 20, 2021 by its ceremonial legislature, expanding the ruling Communist Party's crackdown connected net industries. The information extortion instrumentality follows anti-monopoly and different enforcement actions against companies including e-commerce elephantine Alibaba and games and societal media relation Tencent that caused their stock prices to plunge. Credit: AP Photo/Mark Schiefelbein
China is tightening power implicit information gathered by companies astir the nationalist nether a instrumentality approved Friday by its ceremonial legislature, expanding the ruling Communist Party's crackdown connected net industries.
The data extortion instrumentality follows anti-monopoly and different enforcement actions against companies including e-commerce elephantine Alibaba and games and societal media relation Tencent that caused their stock prices to plunge.
The law, which takes effect Nov. 1, follows complaints companies misused oregon sold lawsuit information without their cognition oregon permission, allowing it to beryllium utilized for fraud oregon unfair practices specified arsenic charging higher prices to immoderate users.
The instrumentality curbs what accusation companies tin stitchery and sets standards for however it indispensable beryllium stored. The afloat substance of the instrumentality wasn't instantly released, but earlier versions besides would necessitate lawsuit support earlier information tin beryllium sold to different company.
The information extortion instrumentality is akin to Europe's General Data Protection Regulation, which limits postulation and handling of customer data. But dissimilar laws successful Western countries, the Chinese authorities says thing astir limiting ruling enactment oregon authorities entree to idiosyncratic information.
The ruling enactment has been accused of utilizing information gathered astir Uyghurs and different members of predominantly Muslim taste groups successful the northwestern portion of Xinjiang to transportation retired a wide run of repression.
In April, Alibaba was fined a grounds $2.8 cardinal for anticompetitive practices.
This month, the authorities said online acquisition companies are nary longer allowed to person overseas concern oregon run arsenic for-profit businesses.
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