• China's top legislative body passed the Personal Information Protection Law likely to be effective from November 1, the Wall Street Journal reported based on Xinhua News Agency.
  • Europe's General Data Protection Regulation inspired China's data protection law, setting stricter rules on companies' user data collection and handling, CNBC reports
  • The U.S. regulators also continue to crack down on the growing influence of the internet tech giants like Facebook Inc (NASDAQ:FB), Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL).
  • China's previous draft of the law mandated user consent for data collection and users' liberty to withdraw that consent at any time.
  • Companies that process data cannot refuse services to non-consenting users unless that data is necessary to provide that product or service.
  • China also imposed strict requirements for transferring Chinese citizens' data beyond the country.
  • Companies failing the rules could be penalized up to 50 million yuan ($7.7 million) or 5% of their annual revenue.
  • The legislation follows President Xi Jinping's crackdown on the dominant tech giants, including  Alibaba Group Holding Ltd (NYSE:BABA),  Tencent Holdings Ltd (OTC:TCEHY),  DiDi Global Inc (NYSE:DIDI). The stocks, including  Bilibili Inc (NASDAQ:BILI) and Baidu Inc (NASDAQ:BIDU), dropped recently following China's banned list of actions for the internet companies.
  • Price Action: DIDI shares traded lower by 1.57% at $7.09, BILI shares traded lower by 2.07% at $63, BIDU shares traded lower by 0.46% at $136.70 in the premarket session on the last check Friday.
  • Photo by Gerd Altmann from Pixabay
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