Tencent must get approval from regulators before publishing new apps
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Folks stroll previous a Tencent signal on the firm headquarters in Shenzhen, Guangdong province, China August 7, 2020.
David Kirton | Reuters
GUANGZHOU, China — Tencent should get approval from Chinese language regulators to ship out updates for its apps, state broadcaster CCTV reported Wednesday.
The transfer comes after regulators discovered a number of apps made by China’s most useful know-how firm violated knowledge safety guidelines on quite a lot of events this yr.
Tencent’s app approvals are at the moment suspended. China’s Ministry of Trade and Info Expertise should overview any new apps and updates earlier than they are often launched. This might take seven days, CCTV reported, with out citing any sources.
“We’re constantly working to boost person safety options inside our apps, and now have common cooperation with related authorities businesses to make sure regulatory compliance. Our apps stay useful and obtainable for obtain,” a Tencent spokesperson informed CNBC in a press release.
Tencent shares in Hong Kong have been up greater than 1% in morning commerce.
Over the previous yr, China has been tightening guidelines on the home tech sector which for years has grown largely unencumbered by regulation. Beijing has launched regulation in areas from antitrust to the way in which algorithms can be used.
One of many greatest laws handed this yr was a landmark personal data protection law. Regulators are focusing closely on how firms are amassing and processing knowledge. The most recent actions in opposition to Tencent are a part of that course of.
The most recent transfer is one other blow for Tencent which has felt the influence of China’s regulatory crackdown. In August, regulators introduced rules that restricted youngsters beneath 18 years outdated to simply three hours of on-line video video games every week and through designated home windows. On the time, Tencent mentioned solely a small a part of its income comes from such gamers.
Clampdown on different areas favored the schooling sector have additionally weakened promoting urge for food which weighed on the corporate’s third-quarter earnings. Tencent’s third-quarter income got here in at 142.4 billion yuan, up 13% from a yr in the past. That was its slowest quarterly income development since going public in 2004, in response to Reuters.
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