 "China cracks down on tech companies' algorithms to serve targeted ads and content to internet users")
China has launched a new campaign to tackle the use of algorithms that drive targeted advertisements and personalised content recommendations online.
The Cyberspace Administration of China (CAC), the country’s internet regulator, announced on Sunday its plans to curb what it terms “information cocoons,” widely known elsewhere as echo chambers. This move wants to reshape how tech companies use recommendation algorithms to influence users, with an emphasis on preventing addiction and promoting transparency.
The CAC’s directive calls for significant changes in how algorithms operate, including a ban on pushing overly similar content to users. While the campaign doesn’t encourage dissent against Communist Party ideals, it sets rules to ensure users aren’t forced to select interest tags and prohibits the use of illegal or harmful information for personalisation. Additionally, platforms are urged to limit the collection of personal data to what is strictly necessary for recommendations.
Transparency and regulation take centre stage
A major focus of the campaign is increasing transparency around how algorithms function. Platforms will be required to disclose how they rank content, a move intended to prevent misuse for generating unwarranted hype or influence. The CAC also highlighted concerns about discriminatory pricing practices in China’s booming e-commerce sector. Algorithms used to set prices based on factors like age, occupation, and spending habits must now adhere to stricter guidelines.
Online businesses are required to assess their practices and self-correct by the end of the year. Local authorities will begin evaluations in January, with a comprehensive government review set for mid-February. Penalties for non-compliance, while not yet specified, have been promised to reflect the severity of any violations.
A broader push for algorithm oversight
This initiative builds on China’s growing focus on algorithm regulation, which began in March 2022 when platforms were mandated to allow users to opt out of targeted content and to make their algorithms public.
In August, regulators released details of 30 algorithms used by major tech players like Alibaba, ByteDance, Tencent, and Baidu. This rare glimpse into the workings of influential platforms was part of a broader effort to encourage regulatory scrutiny and foster “positive energy” across China’s internet.
An ongoing journey
The CAC acknowledged progress since the introduction of these measures but emphasised the need for continued improvement. It stated that while the algorithm ecosystem has become more standardised, persistent issues require further attention. With this latest crackdown, China aims to refine its regulatory framework, balancing economic ambitions with tighter control over digital behaviour.
As this campaign unfolds, tech companies in China face increasing pressure to adapt their operations to align with Beijing’s vision of a more transparent and controlled internet environment.
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