• 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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