China's cyberspace regulator summoned ByteDance's news app Toutiao and Alibaba Group's (NYSE:BABA) UCWeb over content violations.
The Cyberspace Administration of China (CAC) stated that both platforms disrupted the "online ecosystem order" and confirmed that it had imposed strict disciplinary measures.
The summons came a day after CAC launched a two-month nationwide campaign to curb violent or hostile online content.
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The regulator framed the effort as part of its years-long mission to build a "clean and healthy" cyberspace aligned with Communist Party values, Reuters reported on Tuesday.
CAC faulted Toutiao for allowing harmful material on its trending lists and accused UCWeb of letting non-authoritative sources dominate its main feed with sensitive and malicious cases involving cyberbullying and minors' privacy.
In August 2024, China's regulator concluded a three-year probe into Alibaba, declaring the company had ceased its "pick one from two" monopoly practice. In 2021, domestic regulators penalized Alibaba $2.8 billion, equivalent to 4% of its 2019 revenue, marking one of the most significant penalties in China's tech crackdown. The scrutiny also derailed Alibaba fintech affiliate Ant Group's initial public offering and left Alibaba grappling with a weaker economy, rising e-commerce competition, and U.S. chip sanctions.
CAC recently punished other major platforms, including Kuaishou, Weibo, and Xiaohongshu, for similar violations.
Meanwhile, other agencies have tightened scrutiny across the tech sector, summoning cargo service Huolala and investigating Kuaigou for alleged antitrust and e-commerce law breaches.
Price Action: BABA stock traded higher by 0.69% at $165.38 premarket at the last check Tuesday.
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