On January 10, 2025, the Cyberspace Administration of China (CAC) issued a draft of the Regulations on the Management of Business Activities Related to Network Information Content Multi-Channel Distribution Service Organizations (《网络信息内容多渠道分发服务机构相关业务活动管理规定》, the Draft) for public opinion.
According to the Draft, the Network Information Content Multi-Channel Distribution Service Organizations herein is defined as “organizations that are stationed in network information content service platforms and provide planning, production, marketing, brokerage, and other related services to network information content producers,” which are also known as the MCNs (Multi-Channel Networks).
The Draft requests the network information content service platforms (“Platforms”) to go through the procedures for the stationing of MCNs that carry out Internet information content-related business activities thereon and have the following matters to be mainly audited: (i) Whether to register as a business entity in accordance with the law; (ii) Whether to set up a person in charge of content management and whether to have content reviewers appropriate to the scope of business and scale of service; (iii) Whether there are sound systems for content safety and personnel management training. The network information content service platform shall also record at the cyberspace administrative department at the provincial level where it is located within 10 working days upon the procedures for the stationing of MCNs.
The Draft provides multiple rules for the Platforms to manage the MCNs thereon, including but not limited to, periodically organizing MCNs to study laws, regulation, and rules regarding the network information content management; providing and publishing MCNs management rules, establishing a hierarchical management system based on the MCNs’ compliance, account numbers, fans numbers, etc and take relevant measures to prevent information content risk; requesting the MCNs to register a backend management account which is bound with its network accounts; displaying the names of the organization to which the MCNs belong in a prominent manner on the network account information page; requesting the MCNs to perform the obligations to review the information to be released, conduct compliance reviews, and so on (Article 6-10).
The Draft also prohibits the MCNs from directly or by organizing, abetting, commissioning, or assisting a contracted online account to commit the acts including but not limited to: creating and publishing Internet rumors by means of topic setting, synthetic forgery, speculation and fabrication, and piecing together and cutting and splicing; incitement netizens' emotions, deliberately provocation of group confrontation, creation of negative topics to tear apart the consensus, and disruption of network order; sensationalizing about unexpected cases and incidents, consuming disasters and accidents, and displaying details of illegal and criminal behavior in violation of the law; using “online celebrity children” for profit, packaging and publicizing minors, affecting the physical and mental health of minors; organizing publication of information containing insults, rumours, defamation, incitement to hatred, intimidation, coercion, invasion of privacy, as well as accusations, ridicule, derogatory discrimination and other cyberviolence against individuals that affects their physical and mental health; and so on (Article 12).
In case of violations, the Draft provides that the Platforms shall establish a report system and timely handle the report by the public; the measures taken by the Platforms against violations include warning and reminder, deadline for correction, suspension of profit authority, restriction on provision of services, admission and withdrawal, inclusion in the blacklist of the Platform and other measures, and report to the net credit department. Further, both the Platforms and the MCNs shall cooperate with the cyberspace administration departments’ supervision and inspection and provide necessary data and technology support. The Draft also provides that in case of severe violation of the laws, regulations, and those in the Draft herein by the MCNs, the cyberspace administration department shall put the MCNs into the Internet blacklist to realize the linkage disposal in accordance with the law, and the Platforms shall not conduct their admission procedures in a certain period of time (Articles 13-16).
It is commented that such drafted regulation will be good to regulate the MCN industry. For instance, by listing multiple prohibited behaviors, such as making and spreading online rumors, taking advantage of online celebrity children for profit, organizing online bullies, etc., the Draft draws a “red line” to the operation of the MCNs in order to better regulate their business and maintain a better and healthier online environment. Further, the Draft also specifies the Platforms’ responsibilities, such as establishing a hierarchical management system, a report system, etc., to ensure that any violations of the MCNs are handled timely and punished based on their severity in accordance with the platforms’ rules, as well as the relevant laws and regulations. The opinions solicitation will be ended on February 9, 2025.
According to the Draft, the Network Information Content Multi-Channel Distribution Service Organizations herein is defined as “organizations that are stationed in network information content service platforms and provide planning, production, marketing, brokerage, and other related services to network information content producers,” which are also known as the MCNs (Multi-Channel Networks).
The Draft requests the network information content service platforms (“Platforms”) to go through the procedures for the stationing of MCNs that carry out Internet information content-related business activities thereon and have the following matters to be mainly audited: (i) Whether to register as a business entity in accordance with the law; (ii) Whether to set up a person in charge of content management and whether to have content reviewers appropriate to the scope of business and scale of service; (iii) Whether there are sound systems for content safety and personnel management training. The network information content service platform shall also record at the cyberspace administrative department at the provincial level where it is located within 10 working days upon the procedures for the stationing of MCNs.
The Draft provides multiple rules for the Platforms to manage the MCNs thereon, including but not limited to, periodically organizing MCNs to study laws, regulation, and rules regarding the network information content management; providing and publishing MCNs management rules, establishing a hierarchical management system based on the MCNs’ compliance, account numbers, fans numbers, etc and take relevant measures to prevent information content risk; requesting the MCNs to register a backend management account which is bound with its network accounts; displaying the names of the organization to which the MCNs belong in a prominent manner on the network account information page; requesting the MCNs to perform the obligations to review the information to be released, conduct compliance reviews, and so on (Article 6-10).
The Draft also prohibits the MCNs from directly or by organizing, abetting, commissioning, or assisting a contracted online account to commit the acts including but not limited to: creating and publishing Internet rumors by means of topic setting, synthetic forgery, speculation and fabrication, and piecing together and cutting and splicing; incitement netizens' emotions, deliberately provocation of group confrontation, creation of negative topics to tear apart the consensus, and disruption of network order; sensationalizing about unexpected cases and incidents, consuming disasters and accidents, and displaying details of illegal and criminal behavior in violation of the law; using “online celebrity children” for profit, packaging and publicizing minors, affecting the physical and mental health of minors; organizing publication of information containing insults, rumours, defamation, incitement to hatred, intimidation, coercion, invasion of privacy, as well as accusations, ridicule, derogatory discrimination and other cyberviolence against individuals that affects their physical and mental health; and so on (Article 12).
In case of violations, the Draft provides that the Platforms shall establish a report system and timely handle the report by the public; the measures taken by the Platforms against violations include warning and reminder, deadline for correction, suspension of profit authority, restriction on provision of services, admission and withdrawal, inclusion in the blacklist of the Platform and other measures, and report to the net credit department. Further, both the Platforms and the MCNs shall cooperate with the cyberspace administration departments’ supervision and inspection and provide necessary data and technology support. The Draft also provides that in case of severe violation of the laws, regulations, and those in the Draft herein by the MCNs, the cyberspace administration department shall put the MCNs into the Internet blacklist to realize the linkage disposal in accordance with the law, and the Platforms shall not conduct their admission procedures in a certain period of time (Articles 13-16).
It is commented that such drafted regulation will be good to regulate the MCN industry. For instance, by listing multiple prohibited behaviors, such as making and spreading online rumors, taking advantage of online celebrity children for profit, organizing online bullies, etc., the Draft draws a “red line” to the operation of the MCNs in order to better regulate their business and maintain a better and healthier online environment. Further, the Draft also specifies the Platforms’ responsibilities, such as establishing a hierarchical management system, a report system, etc., to ensure that any violations of the MCNs are handled timely and punished based on their severity in accordance with the platforms’ rules, as well as the relevant laws and regulations. The opinions solicitation will be ended on February 9, 2025.