In the news: China regulates mobile apps, opens up to foreign fund managers and sets higher asset appraisal standards

China sets requirements on apps and app stores

The Cyberspace Administration of China (CAC) has tightened its grip on the rapidly growing mobile app market, issuing new rules that demand all domestic app providers to be filed with the authorities, adopt real-name registration, verify user identities and store activity logs for 60 days. The regulation, effective August 1, also requires providers to issue warnings, restrict access, suspend updates or shut down accounts of users who publish “illegal information” and content. They will also need the explicit consent of users to access their geographic location and contact list, record video and audio through the device or activate or bundle functions with their services. The CAC estimated there were more than four million apps available through online stores on the mainland. WeChat, QQ, AliPay, Taobao and Tencent Video were among the most popular last month in terms of active users, according to research firm Analysys International. Under the new rules, mobile app providers must meet six criteria in order to qualify and operate. And for app store providers, an internet content provider (ICP) license from the Ministry of Industry and Information Technology, an online cultural operating permit from the Ministry of Culture and an online publishing permit from the State Administration of Press, Publication, Radio, Film and Television must be obtained. Currently, foreign companies cannot qualify for any of these. Services including Apple's App Store and Google Play in China will need to update their operations. The regulation takes effect on the same day as that for online search and advertising, and both come at the heels of the second reading of the draft Cybersecurity Law, which was presented to the National People's Congress last week.

More from CLP: