On 21 July 2023, the Ministry of Industry and Information Technology (MIIT), the governing authority responsible for the telecommunications sector, issued the Notice on the Filing of Mobile Internet Applications (工业和信息化部关于开展移动互联网应用程序备案工作的通知, the Notice) requiring the record filing of internet application programs (APPs) by the operators of such APPs in China. Given the prevalence of APPs both for businesses and consumers’ personal use in China, this notice will have widespread and significant impact. Here are some key points to be aware of:
What type of APPs are within scope?
The requirement for filing registration applies to APPs that connect to the internet and provide internet information services within China. This encompasses a broad range of APPs used by enterprises and individuals. Notably, this includes not only downloadable APPs from APP stores or websites, but also those immediately accessible through specific portals, such as mini-apps1 and quick-apps2 .
It is important to clarify that, for the purpose of the Notice, the term "China" does not include Hong Kong and Macau Special Administrative Regions and Taiwan as they are considered as different jurisdictions for the purposes of this regulation.
Who is responsible for registering APPs for filing?
The "primary sponsor" of an APP is responsible for undertaking the filing procedures. The term “primary sponsor” is generally considered equivalent to the "operator" of the APP, who operates, controls, and bears responsibility for it. The primary sponsor can either be an entity or an individual.
The Notice, together with the upper-level legislation3, does not impose explicit restrictions on the nationality of the primary sponsor. Nevertheless, it would be practically challenging for foreign entities or individuals to initiate the filing process. This is because as part of the application submission, a primary sponsor will be required to submit a copy of business license for a Chinese-incorporated entity or ID card for a Chinese national issued by a competent Chinese authority. In other words, foreign entities and individuals themselves will not be able to conduct the filing, and this is consistent with the current practice adopted for filing of websites.
In practice, foreign-hosted Apps could be distributed on an App store available in China, as long as they are not found to be violating Chinese laws and policies. According to the Notice, a non-compliance risk would arise in the circumstance where the foreign entity or individual hosting the App is considered a primary sponsor but cannot complete the filing procedures in line with the requirements outlined in the Notice. Consequently, the App store may remove such foreign-hosted apps from its distribution network in China. It remains to be seen whether there will be further guidelines regarding how foreign entities or individuals should adhere to the Notice when intending to launch their Apps in China.
In addition, a non-compliance risk may arise if an APP operator engages a vendor to merely develop the APP but gets the vendor registered as the primary sponsor.
What is the correlation with, and difference between, record filing of a website?
Websites have historically been required to be registered for filing with the local counterparts of the MIIT, independently of whether a licence is necessary. In terms of APPs, it used to be unclear whether an APP should be registered for filing and practice varied significantly depending on the locality of APP operators.
The Notice complements the existing regulations governing websites. From a regulatory standpoint, the Notice now confirms that there is little substantive difference between a website and an APP if the information and services provided are identical. The issuance of the Notice helps clarify the regulatory approach applicable to APPs, consistent with that applied to websites.
As a result, the filing system and process of APPs is anticipated to be largely based on and integrated with that of the websites, although there will be some variations in the required information to be submitted to the local counterparts of the MIIT.
Is there a time limit for APP operators to fulfil the filing requirement?
Primary sponsors of existing APPs must complete record filing procedures through an Internet service provider (ISP) or an APP distribution platform (e.g., an APP store) between September 2023 and March 2024 (the Grace Period). New APPs cannot be put into use unless and until the filing procedures have been successfully fulfilled.
Prior to the Grace Period, ISPs and APP distribution platforms are expected to update their current filing system to accommodate APPs. After the Grace Period, penalties may apply to the parties hosting existing APPs which are found to be unregistered.
Does record filing constitute the only regulatory procedure to be fulfilled by an APP operator?
No, record filing is not the sole regulatory procedure for APP operators in China. Other relevant laws and regulations remain unchanged. Similar to websites, certain types of APPs, such as those related to news, publication, education, movie and TV, and religion, require prior approval/a permit from the respective governing authorities before initiating the record filing procedures administered by the MIIT.
It is crucial to emphasize that online operations in China are subject to a complex licensing and administration regime involving different regulators under various laws. A thorough assessment is essential before launching a website or an APP in China to ensure compliance with these regulations.