This week (from May 16 to May 22), the senior management continued to release the policy signal of good platform economy.
On May 17, the special consultation meeting of the CPPCC National Committee on “promoting the sustainable and healthy development of digital economy” was held in Beijing. Different from the intensive and penetrating supervision in the field of platform economy in 2021, this year emphasizes normalized supervision, with standardized, transparent, predictable and healthy development as the main line. On the same day, Hong Kong stocks collectively closed up, with the Hang Seng technology index rising by 5.78%. The sectors such as Internet technology, automobile and apple concept were among the top gainers. Jd.com and Alibaba rose by more than 7% and BiliBili rose by nearly 7%; Popular Chinese concept stocks rose collectively before the market, with Alibaba up more than 6%, JD up more than 5% and pinduoduo up more than 6%.
In addition, the recently released signals supporting the listing of platform enterprises at home and abroad also respond to the important concerns of China concept shares in the US listing, Hong Kong IPO and other markets, and the trend of China concept shares is improving.
In terms of data security, the regulations on the protection of personal information of Telecom and Internet users will be revised for the first time to meet the current personal information protection needs of Telecom and Internet industries. The administrative measures for the protection of consumers’ rights and interests of Bancassurance institutions (Draft for comments) was issued, which defined the working mechanism and management requirements for the protection of consumers’ rights and interests of Bancassurance institutions.
In terms of overseas supervision, the data governance law, the new guide to the use of facial recognition technology in law enforcement and the consumer privacy law of Connecticut have been passed. The digital euro may be officially developed from the end of next year, and personal privacy issues have attracted attention. Meanwhile, a non-governmental organization in Ireland released a report exposing “the world’s largest privacy disclosure”, and France released the latest cookie related evaluation criteria.
I. platform supervision and governance and anti unfair competition
1, “promoting the sustained and healthy development of digital economy” special consultation meeting held in Beijing
The CPPCC National Committee held a special consultation meeting on “promoting the sustainable and healthy development of digital economy” in Beijing on May 17. Digital economy autonomy, digital real integration, data security, data ownership, use right, operation right, income right, etc. became the key words of the meeting.
The meeting pointed out that we should clarify the rights of data ownership, use right, operation right and income right, and stimulate the innovation vitality of enterprises on the basis of ensuring the security of national network and data. We should encourage international cooperation in the digital economy and actively participate in the process of global digital governance. Once again, it is emphasized that “clarifying the rights of data ownership, use right, operation right and income right” is conducive to better promote the development of data factor market. Once again release positive signals to support the sustained and healthy development of platform economy and private economy, and support the listing of digital enterprises in capital markets outside China. The warming of policy is expected to drive the improvement of Industry Valuation and profitability. Since then, in a series of meetings and policies, the overall policy direction has been consistent, emphasizing normalized supervision, requiring standardization, transparency and predictability, and healthy development has become the main line.
Nancai comments: platform economy is the core of the development of digital economy. The platform is based on data, algorithm and computing power. The connection scope, information and functions of the platform are huge. The cross-border network effect is prominent, and it plays a more and more important role in social production and life. As an important force in China’s economic development, the healthy development of platform economy is particularly important.
2, jd.com and Tencent successively released the first quarter financial report of 2022
On May 17, JD group (9618. HK / JD. O) released its first quarterly report. On May 18, Tencent released its financial report for the first quarter of 2022. From the data presented in the financial reports of the two platforms, the revenue growth is weak; In terms of net profit, Tencent has declined for three consecutive quarters, and JD Q1 has a net loss of 3 billion yuan.
Since the second half of last year, the financial reports of many Internet platform enterprises have collectively stalled, facing the problems of weak revenue growth and slow growth of net profit to varying degrees. The impact of the epidemic and the overall downward pressure on the economy, combined with the strong regulatory factors in 2021, have an impact on the development of platform enterprises to a certain extent.
Nancai comments: capital, data and traffic are the key words around the Internet industry in the past. However, while creating the golden age of the Internet, there have also been problems such as money burning “horse racing enclosure”, low-price dumping, building fenced gardens, data monopoly and so on.
The previous methods of using capital expansion, occupying the track and harvesting traffic to realize have failed, and the Internet industry needs to seek a new growth pole. Internet platform enterprises should make use of their own technological advantages to help entity enterprises carry out digital transformation, strengthen cooperation and sharing among platform enterprises and between platform enterprises and small and medium-sized enterprises, and promote the integrated development of digital technology and real economy. In the new round of development cycle, Internet platform enterprises need to comply with policies, strengthen compliance operations, change business models, empower the real economy with their own advantages, and improve the quality and efficiency of the whole industrial chain.
3. The State Administration of market supervision carried out the pilot innovation of fair competition review system
On May 19, Nancai reporter learned from the General Administration of market supervision that the General Administration of market supervision organized four pilot projects in nine provinces (cities) including Tianjin, Jilin and Shanghai, including fair competition review, information construction, report handling, joint review of major policies and measures and fair competition index. This will help promote the further improvement of the fair competition review system, create broader development space for all kinds of market subjects and all kinds of ownership enterprises, especially small and medium-sized enterprises, and promote the construction of a unified large market and a high standard market system at a higher level, at a deeper level and with greater efforts, so as to promote high-quality development.
Nancai comments: as an important institutional arrangement to restrict administrative power, the fair competition review system is intended to regulate government behavior, prevent the introduction of policies and measures to exclude and restrict market competition, and ensure the decisive role of the market in resource allocation. It is becoming more and more important to maintain the market environment of fair competition.
4. Tencent v. vivo network unfair competition
According to the opening announcement of Jinan Intermediate People’s Court on May 18, the case of Tencent suing vivo network unfair competition will open on May 20. Tencent app Bao sued vivo because, with the help of the advantages of the underlying system of the mobile phone, vivo restricts users from downloading and installing app Bao normally and downloading and installing apps through app Bao by inserting pop-up windows, text, buttons and setting risk detection. At the same time, it induces users to download or install apps in the app store of vivo’s mobile phone, so as to obtain more traffic and commercial benefits.
II. Data security and personal information protection
1. Public security organs rectify the chaos of dynamic IP proxy service
According to the Network Security Bureau of the Ministry of public security, in view of the chaos of dynamic IP proxy services, the Ministry of public security deployed the “net” special action to organize national public security organs to carry out centralized rectification of dynamic IP proxy services.
Among them, in combination with this special content, Jiangxi network security department has handled 14 administrative cases since this year, investigated and dealt with 6 county-level operators and 8 IP jump technology service providers according to law, interviewed the relevant principals of 4 municipal operators, banned 6 “workshop” computer rooms, seized and detained more than 400 servers and other equipment, and shut down more than 1300 illegal broadband accounts.
2. Measures for the administration of consumer protection of banking and insurance institutions (Draft for comments) issued
On May 19, the CBRC announced that it had drafted the administrative measures for the protection of consumers’ rights and interests of banking and insurance institutions (Draft for comments) (hereinafter referred to as the “draft for comments”) to maintain a fair and just financial market environment, practice the political and people-oriented nature of finance, effectively protect the legitimate rights and interests of consumers in the banking and insurance industry and promote the high-quality and steady development of the industry.
The draft for comments consists of eight chapters and 56 articles, which defines the working mechanism and management requirements for the protection of consumers’ rights and interests of banking and insurance institutions, and requires banking and insurance institutions to protect eight consumer rights and interests, including the right to know, the right to independent choice, the right to fair transaction, the right to property security, the right to claim compensation according to law, the right to education, the right to respect and the right to information security.
3. The regulations on the protection of personal information of Telecom and Internet users will be revised for the first time
On May 17, in the 2022 regulation formulation work plan released by the Ministry of industry and information technology to the public, the provisions on the protection of personal information of Telecom and Internet users (Revised) (hereinafter referred to as the provisions) was listed as one of the projects to complete the research and drafting tasks within ten years. This will be the first revision of the regulations in more than eight years since they came into force in September 2013. The regulation is the first departmental regulation focusing on personal information protection in China. It creatively stipulates the collection, use and storage of personal information. With the introduction of the civil code and the personal information protection law, some provisions of the regulation can no longer meet the current personal information protection needs of the telecommunications and Internet industries.
III. overseas supervision
1. Data governance law adopted by the European Council
On May 16, 2022, following the approval of the European Parliament, the European Council officially approved the data governance Act (DGA). So far, only 20 days after it is published in the official gazette of the European Union, the bill will come into force.
Since it was first proposed at the European Commission in November 2020, after more than a year of modification and discussion, this bill symbolizing the new layout of the EU data strategy will eventually be implemented, and the concepts of “data altruism” and “data intermediary” will also be put into practice at the level of laws and regulations to promote its concept of establishing a “digital single market”.
Nancai comments: DGA will lay down basic data use management rules for the EU single digital market, balance the interest demands between enterprise data utilization and citizen personal data protection, provide strategic advice and suggestions for cross sectoral data standardization, and promote the industrial development process of EU data interconnection, which will have a wide impact on the global data governance ecology.
2, digital euro or officially developed by the end of 2023
Fabio Panetta, a member of the board of directors of the European Central Bank, said in a speech on the digital Euro recently that the formal development of the digital euro may begin at the end of next year, and this process will take about three years to complete. If everything goes well, the digital euro will be officially launched in 2027. As for the personal privacy issues that have attracted much attention since the promotion of the central bank’s digital currency, the European Central Bank issued a report in April 2022 to further respond to the public’s demand for personal privacy protection.
3. Evaluation standards related to cookies released by France
On May 16, cnil released the latest cookie related evaluation criteria. According to the standard, if users refuse cookie tracking, the platform can require users to pay to make up for the advertising loss of the platform, but a series of data security principles such as informing users of data usage must be observed.
In fact, since the introduction of cookie technology, its relationship with network privacy has become the focus of attention. Cookie technology has previously caused many privacy disputes in France. Cnil has fined Google and other large platforms for cookies. The supervision of data privacy in other countries and regions is also gradually strengthened, and the supervision rules for cookie technology are becoming more and more strict.
4. The EU has adopted the new guidelines for the use of facial recognition technology in law enforcement
On May 16, the European Union Data Protection Commission (edpb) adopted a new “guide for the use of facial recognition technology in law enforcement” (hereinafter referred to as the “guide”), which reiterates some prohibitions on the use of facial recognition technology and provides guidance for the implementation and use of facial recognition technology systems by EU and national law makers and law enforcement authorities.
5. The fifth state privacy law of the United States was issued
Recently, the Connecticut consumer privacy law (hereinafter referred to as the “privacy law”) was officially passed after being signed by the governor more than ten days after it was voted by the Connecticut legislature, and will enter into force on July 1 next year. Connecticut became the fifth big state to introduce privacy laws after California, Virginia, Colorado and Utah.
The privacy act defines “biometric data” as data generated by automatically measuring an individual’s biometrics, and does not include digital or physical photos, audio or video, and any data generated therefrom, unless such data is generated to identify a specific individual.
6. The report of the Irish civil liberties Commission reveals “the largest privacy disclosure in the world”
A report compiled by Ireland’s ICCL revealed “the world’s largest privacy breach”. In the United States, Google and other advertising technology companies will share users’ online behavior and location with advertisers every day, with an average of 747 times a day and 376 times a day in Europe. Among these companies based on “user observation” advertising system, Google, which uses real-time bidding (RTB) system for short, is the biggest violator, which allows advertisers to lock Internet users through browsing behavior and location.
