TikTok, Line to publish transparency reports by December: MODA

TikTok, Line to publish transparency reports by December: MODA

  • 03.06.2025 07:05
  • taipeitimes.com
  • Keywords: Fraud Prevention Act, transparency reports, fraudulent advertisements, legal representative, Chinese capital

MODA is assisting platforms like TikTok and Line with anti-fraud measures, requiring transparency reports by December. The ministry also focuses on digital resilience, economic development, and anti-fraud policies, with a cybersecurity budget of NT$1.4 billion.

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Estimated market influence

TikTok

Positivesentiment_satisfied
Analyst rating: N/A

Assisting in anti-fraud plans and transparency reports

Line

Line

Positivesentiment_satisfied
Analyst rating: Strong buy

Assisting in anti-fraud plans and transparency reports

Google

Positivesentiment_satisfied
Analyst rating: N/A

Assisting in anti-fraud plans and transparency reports

YouTube

Positivesentiment_satisfied
Analyst rating: N/A

Assisting in anti-fraud plans and transparency reports

Facebook

Positivesentiment_satisfied
Analyst rating: N/A

Assisting in anti-fraud plans and transparency reports

Instagram

Positivesentiment_satisfied
Analyst rating: N/A

Assisting in anti-fraud plans and transparency reports

Shopee

Negativesentiment_dissatisfied
Analyst rating: N/A

Suspected of being backed by Chinese capital

Ministry of Digital Affairs (MODA)

Neutralsentiment_neutral
Analyst rating: N/A

Overseeing platforms and enacting Fraud Prevention Act

Ministry of Economic Affairs

Neutralsentiment_neutral
Analyst rating: N/A

Reviewing Shopee

Mainland Affairs Council

Neutralsentiment_neutral
Analyst rating: N/A

Reviewing TikTok

Control Yuan

Negativesentiment_dissatisfied
Analyst rating: N/A

Applying for independent review of Shopee

Context

Analysis of Business Insights and Market Implications

Key Facts and Data Points

  • Six platforms under MODA oversight: Google, YouTube, Line, Facebook, Instagram, and TikTok (owned by four companies).
  • Transparency Reports: Platforms must publish transparency reports by December 2023.
  • Fraud Prevention Act: Enacted in July 2022, requiring identity verification for advertisers and investors.
  • Anti-Fraud Plans: Platforms submitted plans in November 2023, with MODA providing guidance for implementation.
  • TikTok Legal Representative: Pending review by MODA, Mainland Affairs Council, and Ministry of Economic Affairs.
  • Shopee Scrutiny: Control Yuan members requested an independent review due to suspicions of Chinese capital involvement.
  • MODA's Policy Focus: Strengthening digital resilience, developing the digital economy, and enhancing anti-fraud measures.
  • Investment in Cybersecurity: NT$1.4 billion (US$46.7 million) over three years for critical infrastructure resilience.

Market Implications and Business Insights

  • Regulatory Compliance: Platforms like TikTok, Line, Google, Facebook, and Instagram face increased regulatory scrutiny and must comply with anti-fraud measures, impacting their operational strategies.
  • Transparency Expectations: The requirement to publish transparency reports by December 2023 may set a precedent for greater accountability and trust in digital platforms.
  • Legal and Compliance Costs: Companies may incur additional costs to appoint legal representatives and comply with regulations, affecting their financial planning.
  • Competitive Dynamics: Enhanced anti-fraud measures could level the playing field, reducing opportunities for fraudulent activities and potentially increasing user trust.
  • Digital Economy Growth: MODA's focus on digital resilience and economy development could foster innovation and growth in the tech sector.
  • Cybersecurity Investment: The NT$1.4 billion investment highlights the importance of cybersecurity, creating opportunities for tech companies specializing in this area.

Long-Term Effects and Strategic Considerations

  • Strategic Adjustments: Companies must adapt to ongoing regulatory changes, potentially altering their business models and operational practices.
  • Global Compliance: The measures may influence global standards for digital platforms, affecting how companies operate internationally.
  • Public Trust: Enhanced transparency and fraud prevention could improve public trust in digital platforms, boosting user engagement and retention.

Conclusion

The MODA's initiatives underscore a shift towards stricter regulatory oversight, emphasizing transparency and cybersecurity. This impacts digital platforms' operations, compliance strategies, and long-term business planning. Companies must navigate these changes to maintain competitiveness and user trust in an evolving digital landscape.