Beijing lectures Alibaba, Baidu cloud units over fraudulent websites amid internet clean-up campaigns
- China’s industry ministry told Alibaba and Baidu that their cloud units were not adequately fighting telecoms fraud and ordered corrective action
- Both cloud computing and storage services are facing mounting scrutiny in China as the government increases regulatory oversight of the internet
The Ministry of Industry and Information Technology (MIIT) found measures from Alibaba Cloud and Baidu Cloud, two of China’s largest cloud businesses, to be inadequate for handling and preventing telecoms fraud, according to an agency statement released on Tuesday. Both platforms allowed a high number of fraudulent websites to access their services, the MIIT said.
The companies were summoned jointly by the MIIT’s cybersecurity bureau and the Public Security Bureau’s criminal investigation department, according to the statement. Alibaba is the owner of the South China Morning Post.
China’s internet industry to face deeper scrutiny in targeted campaign
The cloud businesses were told to correct the highlighted issues, according to the regulators, which did not publicly specify a deadline. Measures considered to be unsatisfactory would be met with severe punishment in accordance with laws and regulations, they added.
In response, Alibaba and Baidu said they would earnestly implement the required changes and improve management of website access, domain name registration and information services in order to prevent and resolve telecoms fraud risks, the MIIT said.
Baidu said it has no further comment on the matter. Alibaba did not respond to a request for comment on Tuesday.
The meeting came roughly a year into Beijing’s regulatory crackdown on Big Tech, which started by targeting monopolistic practices and expanded to include everything from data security to video games. The government has also been running internet clean-up campaigns this year.
Consumer-facing cloud services in China are facing increasing scrutiny, as well. Last week, the MIIT ordered eight personal cloud storage providers – including Baidu, Tencent and Alibaba – to sign a “self-discipline pact”, in which they pledged to stop restricting download speeds for non-paying users.
In its latest statement, the MIIT said it would continue to urge internet companies to fulfil their security obligations.
