Beijing forces Chinese tech companies to reveal their algorithms

Some major Chinese tech companies such as Tencent, Alibaba and Tiktok owner ByteDance have turned over details of algorithms used in their products to a state regulator. The unprecedented move is part of Beijing’s attempt to control the sector, the regulator announced.

Under a law passed in March, companies must guarantee the Chinese regulator that their algorithms fall within the regulatory framework.

“At the moment, the authorities have not explicitly asked companies to modify their algorithms,” Angela Zhang, an expert in Chinese law at the University of Hong Kong, tells AFP.

“Regulators are currently gathering information,” adds Zhang.

On the other hand, the Cyberspace Administration of China published for the first time on Friday (12) details of the use of its algorithms by tech companies.

Online commerce leader Alibaba, for example, recommends new products based on users’ search and browsing history.

Douyin, the version of the TikTok app for the Chinese market, makes recommendations based on the time people spend on each piece of content.

With these tools it is possible to analyze large amounts of data about a user and automate recommendations according to their practices or habits.

Algorithms, the basis of the digital economy, serve as the engine for most internet applications and services, which is why companies tend to keep them secret.

Faced with this opacity of information, authorities seek to redefine algorithmic legislation.

For the past two years, Chinese officials have been particularly intransigent with the tech sector, which they monitor through hitherto broad practices.

Several large companies were fined for abuses in terms of protection of personal data, competition and user rights.

Last month, the company Didi, leader in VTC (vehicles with drivers), was fined US$ 1.215 billion (R$ 6.1 billion) for violating data protection rules.