China Regulators Found DouYu, YY Collected User Data Without Permission

Douyu, YY were named among 30 other Chinese platforms that allegedly violated users' privacy.

Author: Belinda Zhou   

China's internet regulator condemned YY Inc. (Nasdaq: YY), DouYu International Holdings Ltd. (Nasdaq: DOYU) and 30 other platforms for collecting illegal information.

The Ministry of Industry and Information Technology said in its report for the second quarter that 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's (HKEX: 3690) delivery service were on the list among others. 

The regulators said 61 internet companies and 51 mobile application operators were investigated overall in the second quarter. 

"32 apps exhibit abnormal behavior including illegal collection of user information, forceful promotion other applications and so on," the report stated. "We have asked them to fix it by law," it also said.

The Ministry has received 56,640 reports of illegal mobile phone applications in the second quarter, which dropped 56 percent year-over-year and 31 percent quarter-over-quarter, according to the statement.

YY provides livestreaming entertainment on its interactive platform. DouYu streams content including gaming, cooking and sports on its video-sharing platform.

Shares in YY closed at $63.23 apiece, up 96 cents on Friday. DouYu's stock was up 4 percent, at $9.50 per American depositary share.