Global Concerns Over Short Video Platforms Intensify as Kuaishou Faces Penalties
On November 22, Chinese authorities penalized Kuaishou (HKEX: 01024) for failing to comply with cybersecurity regulations, including the inadequate implementation of youth protection measures and the proliferation of illegal content. The punishment underscores mounting concerns about the negative impact of short video platforms on minors—a challenge that is drawing increasing scrutiny worldwide.
Kuaishou Penalized for Cybersecurity Law Violations
According to the National Cybersecurity Notification Center, Kuaishou violated provisions of China’s Cybersecurity Law by:
- Delays in Removing Illegal Content: The platform failed to promptly address and remove content banned by law, enabling its spread.
- Inadequate Implementation of Youth Mode: Kuaishou's youth protection features were found insufficient, leaving minors exposed to harmful content and excessive screen time.
These shortcomings have significant implications for the mental and physical well-being of minors. Authorities imposed administrative penalties on Kuaishou, mandating:
- The complete implementation of an effective youth mode.
- Comprehensive screening and removal of illegal content.
- Strict handling of accounts associated with violations.
China’s Broader Efforts to Tackle Online Risks
This action against Kuaishou reflects China's growing focus on regulating digital platforms to protect minors. Effective January 1, 2024, the Regulations on the Protection of Minors in Cyberspace will require online platforms to:
- Offer age-appropriate features for minors.
- Limit usage times, screen time, and access to harmful content.
- Empower guardians with tools to manage children’s online activities, including time and consumption controls.
Youth Mode Challenges Across Platforms
Kuaishou’s shortcomings highlight a pervasive issue across digital platforms. Investigations reveal that many platforms’ youth protection measures are either inadequate or easily bypassed. For instance:
- Bypassing Youth Mode: A 2021 test revealed that users could circumvent youth mode restrictions on apps like Douyin (TikTok) and Kuaishou by uninstalling and reinstalling the apps. This allowed minors to continue using the platform after reaching daily screen time limits.
- Tencent’s WeChat: In 2021, Tencent faced criticism for failing to align its youth mode with the Minor Protection Law, leading to allegations of infringing on minors' rights. Tencent pledged to improve its compliance and address public concerns.
Global Impact of Short Video Platforms on Children
The concerns raised by Kuaishou's case resonate globally. Countries worldwide are grappling with the detrimental effects of short video platforms on children’s mental health and overall well-being:
United States
- Addictive Design: Several U.S. states have sued TikTok, accusing it of designing addictive features that harm minors' mental health.
- Legislative Actions: The U.S. Senate passed the Kids Online Safety Act, requiring platforms to implement robust protections against harmful content targeting children.
France
- Tragic Consequences: French families have filed lawsuits against TikTok, blaming the platform’s harmful content for two suicides among adolescents.
- Content Moderation Failures: These cases highlight significant gaps in the platform’s ability to shield young users from harmful material.
Australia
- Proposed Social Media Restrictions: Australia introduced a bill banning social media access for children under 16 without stringent age verification measures. Platforms failing to comply could face fines of up to AUD 50 million.
Strengthened Regulatory Measures Worldwide
Governments are introducing policies to curb the negative impact of digital platforms on children:
- Legislation and Fines: Many countries are adopting stricter regulations, holding platforms accountable for failing to protect minors.
- Parental Controls and Education: Authorities are emphasizing parental involvement, urging families to engage with children about online content and model appropriate digital behavior.
- Age Verification Technology: Advanced verification measures are being explored to prevent minors from creating accounts on restricted platforms.
Industry Challenges and Responsibilities
The scrutiny on Kuaishou and similar platforms highlights the challenge of balancing rapid technological innovation with social responsibility. The National Cybersecurity Notification Center emphasized that all platforms must:
- Implement robust content moderation strategies.
- Strengthen youth protection mechanisms, including meaningful restrictions.
- Take proactive steps to prevent the dissemination of harmful information.
Kuaishou’s Resilience Amid Regulatory Challenges
Despite these challenges, Kuaishou’s financial performance demonstrates resilience. In its Q3 2023 financial report:
- Revenue grew 11.4% year-over-year to RMB 311 billion.
- Net Profit increased by 24.4% to RMB 39 billion.
- User Growth: Daily active users (DAUs) reached 408 million, up 5.4% year-over-year, while monthly active users (MAUs) climbed 4.3% to 714 million.
These metrics underscore Kuaishou's significant market presence, but sustained growth will depend on its ability to comply with regulatory expectations and improve user safety.
A Shared Global Challenge
The rise of short video platforms has brought tremendous opportunities for creativity and connectivity, but their adverse effects on minors cannot be ignored. As countries like China, the United States, France, and Australia enact stricter measures, the global digital landscape is evolving toward a model that prioritizes the safety of its youngest users. For companies like Kuaishou, compliance is not only a legal obligation but also a moral imperative to ensure a healthier digital environment for future generations.