- China looks to rein in the potential abuse of algorithms by internet giants from ByteDance Ltd to Tencent Holdings Ltd (OTC: TCEHY), Bloomberg reports.
- The Cyberspace Administration of China looks to inspect how social media platforms serve up ads and content to hook users, especially the large-scale websites, platforms, and products with significant influence.
- China aims to implement the new rules governing the industry's use of algorithms to forbid online addiction and any activity endangering national security by China's most influential corporations.
- Also Read: Tencent Caught In Regulatory Turmoil Like Jack Ma's Ant Group, Another Analyst Cuts Price Target On Alibaba
- The watchdog interviewed representatives from companies including Tencent, Alibaba Group Holding Ltd (NYSE: BABA), Meituan (OTC:MPNGF), and JD.com Inc (NASDAQ:JD) to address job cuts totaling 216,800 from July to mid-March.
- The companies hired 295,900 people over the same period, a net increase.
- Tencent doled out over $200 million apiece to two unidentified executives in 2021 while slashing founder Pony Ma's compensation for a year in which Beijing's crackdown sent Tencent's stock down by 19%.
- Investors, which wiped out over $1 trillion of Chinese tech stock value at the height of the crackdown, remain cautious in 2022.
- Companies including ByteDance and Tencent tweaked their products following the crackdown to protect personal privacy.
- After Tencent decided to shut down its game streaming service, the Chinese tech stocks went jittery.
- Price Action: BABA shares traded lower by 0.21% at $104.05 premarket on the last check Friday.
