Yahoo Formally Withdraws From China After New Data Protection Law Comes Into Force
The PIPL, the Chinese version of the GDPR, establishes a comprehensive set of rules on how businesses should collect, use, process, share and transfer personal information in China and came into effect on November 1, 2021.
Before the introduction of PIPL, Chinese consumers did not have a CPRA or GDPR selector for their marketing preferences. At the same time, PIPL also allows Beijing to tighten control over how the country’s big tech uses data and restrict how private data is transferred overseas.
“Given the increasingly difficult business and legal environment in China, Yahoo’s suite of services will no longer be accessible from mainland China as of November 1,” a Yahoo spokesperson said.
Yahoo entered China in 1999 where it offered e-mail, directory search services, and newspaper article translations. The company’s Chinese operations have been run by e-commerce giant Alibaba since 2005, before Alibaba closed the platform in 2013.
According to the Wall Street Journal, Yahoo also closed its Beijing research and development center in 2015, laying off between 200 and 300 employees.
Yahoo joins business networking platform LinkedIn as the second US company to leave China.
LinkedIn has announced that it will replace its Chinese service, which restricts certain content to comply with local government requirements, with a job board service that lacks social media features, such as the ability to share opinions and news. .
“We decided after facing a much harsher operating environment and more stringent compliance requirements in China. We haven’t found the same level of success in the more social aspects of sharing and information, ”he said.
Yahoo last month sold Apollo Global Management for $ 5 billion, with former owner Verizon retaining a 10% stake in the company.