WeChat parent company Tencent shares went down 10% for non-compliance with child protection laws

August 09, 2021 | 2 minutes read

Tencent the company which owns WeChat gets sued by Chinese prosecutors over claim WeChat’s Youth Mode of not following  laws protecting minors

The Beijing prosecutors have launched the civil legal action against Tencent over claims that its messaging app WeChat youth Mode does not follow the laws concerned with protecting minors, BBC reported.Tencent in the aftermath of the news lost its share value to 10 percent.

WeChat youth Mode:

WeChat is a multipurpose messaging, mobile payment and social media app.Its youth mode has certain restrictions like the younger users from doing payments, playing certain games or finding nearby friends. 

What is the lawsuit about?

The suit shockingly does not specifically point out how the app is responsible for violating the minor protection laws. But the action comes after the state owned Chinese newspaper labelled the online games as “opium for mind”. However the article was later toned down, Wall Street Journal reported. WeChat is extensively known as Weixin in China with 1.26 million monthly users.

What Tencent said ?

Tencent reacted by saying that  it would “investigate” the claim.

“We will earnestly inspect and check the functions of WeChat Youth Mode, accept user suggestions humbly and sincerely respond to civil public-interest litigation,” the company posted on Weibo.

Background:

Last month the Cyberspace Administration of China ordered the app stores to remove   Didi Chuxing’s app, the ride hailing app, upon the claim of collecting users personal data. Experts however are fearing this to be a crackdown by Chinese on its large tech companies as in April it fined famous e-commerce app Alibaba over stifle competition.