Yahoo- an internet firm withdrawn from China amid a challenging business and legal environment. The announcement came from Yahoo as Beijing tightens control over the industry. The Company said on Tuesday, ‘’ In recognition of the increasingly challenging business and legal environment in China, Yahoo’s suite of Services will no longer be accessible from mainland China as of November, 1.’’
China is introducing new data protection, which will be in effect on Monday. The legislation took a year to complete. Though, it’s a tough decision. However, Chines believe it will provide security to the personal information gather by the big tech companies, and how it is use. Hence, Yahoo has decided to pull the company out of that environment.
Moreover, the companies will cooperate with the Chines authorities, and hand over any data requested by the authorities, making it difficult for international companies to operate in China. International firms also face pressure from their home country, if they follow the rules and hand over data to Chines authorities.
New Legislation impacts on International firms
Previously, Microsoft’s professional networking platform LinkedIn had withdrawn from China. Now following the same steps, Yahoo shutting down operations in China. Also, foreign tech companies have been informing their users about the major changes in their services recently. According to Wall Street Journal, Users of Apps such as Yahoo weather were told in October. Similarly, Aol.com and news outlets such as TechCrunch were affected by the decision.
As competition grew, China is hardening the regulations towards foreign tech companies. In 2015, Yahoo closed its Beijing office and downsize its operations. Analysts say Yahoo’s exit from China is largely symbolic. China has blocked the web portal of Yahoo service, and also blocked other US internet services. Such as Google and Facebook.