- China's ban on younger users from sending virtual gifts on Livestream platforms could hamper companies, including Alibaba Group Holding Limited BABA, TikTok parent ByteDance Ltd, and Kuaishou Technology KSHTY, SCMP reports.
- The government prohibited Livestream apps from providing minors with facilities for online transfers or virtual gift-purchase services.
- In addition, the government also ordered platforms to stop providing Livestream feeds to minors after 10 p.m., Bloomberg reports.
- Also Read: Alibaba Loses Live-Stream Shoppers To TikTok Popularized Short Videos
- Recently the government hinted at ending a year-long crackdown on China's internet industry, the world's largest e-commerce market, creating technology giants like Alibaba and Tencent Holding Ltd TCEHY. China pledged to support the healthy growth of platform companies amid Covid lockdowns.
- Previously, young people could send virtual gifts or cash tokens to Livestream performers, with some platforms claiming a commission fee from the contributions.
- The Chinese tech giants have started scaling back following the crackdown.
- Price Action: BABA shares closed lower by 4.85% at $90.05 on Friday.
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