Tencent should search regulatory approval earlier than any new apps are launched

Individuals stroll previous a Tencent signal on the firm’s headquarters in Shenzhen, Guangdong province, China on Aug 7, 2020.

David Kirton | Reuters

GUANGZHOU, China – Tencent should search approval from Chinese language regulators to ship updates for its apps, state broadcaster CCTV reported on Wednesday.

The transfer comes after regulators discovered a number of instances this 12 months that a number of apps from China’s Most worthy know-how firm violated information safety rules.

Tencent’s app approvals are at the moment on maintain. China’s Ministry of Trade and Info Expertise should evaluate all new apps and updates earlier than they will hit the market. This might take seven days, CCTV reported, with out naming any sources.

“We’re constantly working to enhance the consumer safety options in our apps, and we additionally work recurrently with the related authorities companies to make sure compliance with authorized necessities. Our apps stay purposeful and accessible for obtain, ”a Tencent spokesman stated in a press release to CNBC.

Tencent shares in Hong Kong rose greater than 1% in morning buying and selling.

Final 12 months, China tightened the principles for the home know-how sector, which has grown largely unencumbered by rules for years. Beijing has launched rules in areas from antitrust regulation to using algorithms.

One of many greatest rules handed this 12 months was a landmark regulation on the safety of private information. Regulators focus closely on how firms acquire and course of information. The latest actions towards Tencent are a part of that course of.

The most recent transfer is one other blow to Tencent, which has suffered the influence of Chinese language regulators. In August, regulators launched guidelines proscribing kids below the age of 18 to solely three hours of on-line video video games per week and through sure time home windows. On the time, Tencent stated solely a small portion of its income comes from such gamers.

Crackdowns in different areas reminiscent of training additionally weakened promoting thirst, which weighed on the corporate’s earnings within the third quarter. Tencent’s third-quarter income was 142.4 billion yuan, up 13% 12 months over 12 months. In response to Reuters, this was the slowest quarterly income development since going public in 2004.

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