China Regulators Found DouYu, YY Collected User Data Without Permission

Douyu, YY were named among 30 other Chinese platforms that allegedly violated users' privacy.
Belinda ZhouSep 21,2019,06:55

China’s internet regulator slated YY Inc. (Nasdaq: YY), DouYu International Holdings Ltd. (Nasdaq: DOYU) and other 30 app operators for illegal information collection in its quarterly reports Friday.

The regulator in Beijing, Ministry of Industry and Information Technology, issued its report for the second quarter, saying 32 app operators collected and used their users’ personal information without permission. Social media platform YY, Tencent Holdings Ltd. (HKEX: 0700)-backed Douyu and Meituan Dianping (HKEX: 3690)-backed Meituan Delivery are nominated. 

The internet regulator said it investigated 61 internet companies and 51 mobile application operators in the second quarter totallt. It asked the related companies  

“32 apps exhibit abnormal behavior including illegal collection of user information, forceful promotion other applications and so on,” regulators wrote in the report. “We have asked them to fix it by law,” they added.

Regulators said its reporting acceptance center received 56,640 effective reports of illegal mobile phone applications in the second quarter, which dropped 56 percent year-over-year and 31 percent quarter-over-quarter.

YY focuses on livestreaming on its interactive platform. Douyu streams a variety of content on its video-sharing platform. In addition to gaming, DouYu broadcasts sports, cooking and other entertainment. It also hosts virtual game tournaments on a massive scale, drawing hundreds of thousands of arcade fans.

Shares in YY were trading at $62.59 apiece, up 1 percent intraday Friday. Douyu’s stock soared 4 percent to $9.50 per American depositary share midday Friday.