China to Ban Apps Collecting Excessive User Data

New Regulations on Data Collection by Apps in China

Effective May 1st, applications operating within China will be prohibited from compelling users to submit an overabundance of personal data. This policy is outlined in a jointly issued document from leading Chinese regulatory bodies.

These bodies include the Cyberspace Administration, the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Administration for Market Regulation.

Common Practices and Concerns

Previously, it has been a widespread practice for apps in China to request extensive personal information from users. Access was often denied to those who declined to share this data.

While certain data requests, like location access for navigation apps, are reasonable, many others are not. An example of an unnecessary request is biometric data for mobile payments.

Defined Data Collection Scope

In December, Chinese authorities established the permissible boundaries for data collection by 39 frequently used app categories, as previously covered by TechCrunch.

The new regulations apply to all app formats, encompassing the increasingly prevalent “mini programs.” These are lightweight applications accessed through platforms like WeChat and Alipay, bypassing the need for traditional app store installation.

Impact on Advertising

Todd Kuhns, marketing manager at AppInChina, explains that superfluous data is frequently utilized for advertising initiatives.

This includes targeted advertising based on user location or interests. Developers can still request additional information, but users who opt out may receive less relevant advertisements and offers.

Enforcement and Future Outlook

Currently, the document functions primarily as a guideline, lacking specific details regarding enforcement mechanisms and penalties for non-compliance.

This represents a step forward for data protection in China, but regulators must continually refine the rules to keep pace with the accelerating integration of digital technology into daily life.

Broader Regulatory Trends

In recent months, China has increased scrutiny of its previously celebrated technology sector.

A comprehensive antitrust law has been implemented to regulate the “platform economy,” and substantial anti-competition fines have been levied against companies like Alibaba and Tencent.

These actions followed the suspension of Ant Group’s initial public offering.