Background:

1.       A continuing, detailed supplement on the current data governance system in China.

2.       Establishing management rules for rampant over-recommendation and data collection in internet services and applications.

Current Status and Facts:

1.       Regulations on Algorithm Recommendation Management of Internet Information Service (hereinafter referred to as the “Regulations”) have called for comments since August 27th, 2021.

2.       An extension to current cybersecurity law systems (for example, Cybersecurity Law of the People's Republic of China, Data Security Law of the People's Republic of China, etc.).

3.       All such service providers and developers are included; and regulating scope covers a wide range of the internet, including search engines, service platforms (e.g.: food delivery or ride-hailing), social media, and so on.

Possible Impact and Suggestions:

1.       Service providers may no longer “play God” with users.

2.       Any further app or platform upgrades must be provided with a non-algorithm option for users.

3.       A request for service providers to publish their algorithm rules could potentially cause or influence a business model to change (which in turn may lead to a change in profit patterns).

4.       More compliance-related actions are suggested to be taken to comply with Regulations.