Opinion – Tatiana Prazeres: Experience from China will answer, after all, how difficult it is to regulate algorithms

There are over 1 billion internet users in China. And they spend more and more time online — 28.5 hours a week on average, an increase of 2.3 hours compared to 2020. With the digitization of society and the economy, the control over the performance of technology companies in the world also increases. parents.

In the context of the regulatory festival that affects Chinese big tech, the last novelty to come into force, in March, was the regulation on recommendations based on algorithms.

The new rules hit digital platforms that promote content, carry out searches and filtering, feed users with videos, news and offers or offer a variable price depending on the circumstances.

They will no longer be able to keep the cake recipe a secret, they will need to explain how their algorithms make these recommendations to users. It is precisely this technology that is at the basis of the success of Chinese giants such as Alibaba, TikTok and Didi (in addition to the non-Chinese known around the world).

With the regulation on algorithms, China takes the lead in what is a global challenge to curb software that feeds addiction to the use of the service, compulsive purchases on the internet, inappropriate practices for children, false profiles, fake news, in addition to abusive behavior of companies that hold very large shares of the market.

The new legislation requires, for example, that the user can easily turn off recommendations made by algorithms and, in that case, stop receiving advertising or personalized content. At the same time, it allows Beijing, in the name of social harmony, to promote certain content by disciplining algorithms. And limit others.

To a large extent, the Chinese dilemma is shared by other countries. On the one hand, there is the desire to impose limits on an industry that has become too big, too strategic and which, until now, has found few restrictions on its performance.

On the other hand, there is a concern not to inhibit innovation, investments and the generation of value in a sector that is so crucial to the economy and society. In the European Union and the US, the debate over artificial intelligence regulation and algorithmic accountability has been going on for several years, with concrete proposals still under discussion.

For China, the battle for leadership of the digital economy is also at stake. The country intends to be a world leader in artificial intelligence by 2030. To achieve this goal, it cannot go wrong in terms of regulation on algorithms. In addition to this legislation, Beijing recently adopted rules on privacy and protection of personal data.

In a bold move, at the same time as it races, China tightens the screws on the regulatory environment that has been catapulting its digital technology sector.

Plenty of data and a lax regulatory environment have always been seen as Chinese advantages in the development of artificial intelligence — and both pillars are affected by the new developments.

It remains to monitor the implementation of the rules and their impacts on the market. Will Chinese users really choose to turn off personalized recommendations if it leads to a worse online experience? What impact will the changes have on the revenue and market value of Chinese big tech? Will these results be enough to make them rethink their business models?

The rest of the world may not want to take the direction of the Chinese in terms of regulating algorithms, especially given their dimension of political and social control. But neither can it afford to ignore the experiment just started by Beijing.

Due to its pioneering character, the experience will influence the global debate on the subject and help to answer, after all, how difficult it is to regulate algorithms.