World
Weibo IPO reveals a company struggling with censorship

Weibo, ‘China’s Twitter’, started offering shares on NASDAQ last week. Its regulatory disclosures reveal a company’s balancing act between censoring too much and too little.

Starting 17th April, investors can purchase shares of Weibo, sometimes called “China’s Twitter,” on NASDAQ. The company’s regulatory filing with the SEC reveals details not previously known about Weibo’s censorship apparatus, which we wrote about last year.

Weibo, like all Internet publishers and providers in China, is prohibited from letting their users display content that is obscene, fraudulent, defamatory or otherwise illegal under Chinese laws. The content prohibitions also forbid material that “impairs the national dignity of China,” “is reactionary,” “superstitious,” or “socially destabilizing.”

As required under SEC regulations, the company must list for investors’ potential risks that might affect its share price. Weibo is up front about the risk the Chinese government’s regulation of content poses to its ability so succeed. “Failure to [censor] may subject us to liabilities and penalties and may even result in the temporary blockage or complete shutdown of our online operations.”

Under a section titled "Risks Relating to Doing Business in China," the company cites as a material risk not being able to censor user content quickly enough for the Chinese government, and describes a three-day period in March 2012 when Weibo disabled commenting completely so censors could "clean up" all content regarding a topic. The company did not disclose the topic but the Wall Street Journal reported in March 2012 that China put temporary restrictions on Sina, Weibo's parent company, as well as Tencent, a rival microblogging service, and that it was “detaining individuals that it accused of spreading rumors of a coup attempt in Beijing.” That week, according to the Journal story, Sina and Tencent placed identical notices on their web sites, warning users that the ability to comment on posts was being shut down for three days.

In the regulatory filing, Weibo says it doubts it can censor its users adequately enough to satisfy the government. “Although we attempt to monitor the content posted by users on our platform, we are not able to effectively control or restrict content (including comments as well as pictures, videos and other multimedia content) generated or placed on our platform by our users.”

For Weibo, censorship that’s adequate for the government may alienate consumers. As Wired reported today, after a government crackdown threatening to jail users who post “inaccurate” messages if it is viewed over 500 times, Weibo's users started to leave the service. Censorship, according to Weibo’s filing, can “adversely affect our user experience and reduce users’ engagement and activities on our platform as well as adversely affect our ability to attract new users to our platform.”

Also new in Weibo’s filing is a sense of the scale of their operations. Little was previously known about how many human sensors Weibo employs, or how much it costs the company to maintain the staff and the technology to monitor the over 100 million posts its users create per day, though this has been the subject of much research. Weibo’s filing with the SEC claims they have a little more than 2,000 employees total, which is fewer than the number of censors alone researchers believe Weibo employs. That might mean the researchers’ estimates are wrong or that the censors are employed by a contractor.

A ProPublica investigation last year republished images deleted by censors on Sina Weibo, along with translations and explanations of the images themselves.

To see the most recent censored posts detected on Sina Weibo, visit freeweibo.com.

Read Weibo's section on risk related to censorship below, or read the full regulatory disclosure.

Risks Relating to Doing Business in China

Regulation and censorship of information disseminated over the internet in China may adversely affect our business and subject us to liability for information displayed on our platform.

The PRC government has adopted regulations governing internet access and the distribution of information over the internet. Under these regulations, internet content providers and internet publishers are prohibited from posting or displaying over the internet content that, among other things, impairs the national dignity of China, is reactionary, obscene, superstitious, fraudulent or defamatory, or otherwise violates PRC laws and regulations. Failure to comply with these requirements may result in the revocation of licenses to provide internet content and other licenses and the closure of the concerned websites. The website operator may also be held liable for such censored information displayed on or linked to the website.

In addition, the MIIT has published regulations that subject website operators to potential liability for content displayed on their websites and for the actions of users and others using their systems, including liability for violations of PRC laws prohibiting the dissemination of content deemed to be socially destabilizing. The Ministry of Public Security has the authority to order any local internet service provider to block any internet website at its sole discretion. From time to time, the Ministry of Public Security has stopped the dissemination over the internet of information which it believes to be socially destabilizing. The State Administration for the Protection of State Secrets is also authorized to block any website it deems to be leaking state secrets or failing to meet the relevant regulations relating to the protection of state secrets in the dissemination of online information.

Although we attempt to monitor the content posted by users on our platform, we are not able to effectively control or restrict content (including comments as well as pictures, videos and other multimedia content) generated or placed on our platform by our users. In March 2012, we had to disable the Comment feature on our platform for three days to clean up feeds related to certain rumors. To the extent that PRC regulatory authorities find any content displayed on our platform objectionable, they may require us to limit or eliminate the dissemination of such information on our platform. Failure to do so may subject us to liabilities and penalties and may even result in the temporary blockage or complete shutdown of our online operations. In addition, the Judicial Interpretation on the Application of Law in Trial of Online Defamation and Other Online Crimes jointly promulgated by the Supreme People’s Court and Supreme People’s Procuratorate, which became effective on September 10, 2013, imposes up to a three-year prison sentence on internet users who fabricate or knowingly share defamatory false information online. The implementation of this newly promulgated judicial interpretation may have a significant and adverse effect on the traffic of our platform and discourage the creation of user generated content, which in turn may impact the results of our operations and ultimately the trading price of our ADSs. Although our active user base has increased over the past several years, regulation and censorship of information disseminated over the internet in China may adversely affect our user experience and reduce users’ engagement and activities on our platform as well as adversely affect our ability to attract new users to our platform. Any and all of these adverse impacts may ultimately materially and adversely affect our business and results of operations.

Courtesy: ProPublica.org

User

No secrecy in deletions of voters in Pune, says Gadre

Responding to criticism of incidents where several people from Pune found their names were missing from the voter lists, the state chief electoral officer said the EC deleted 50 lakh names in August last year and also published the list online

Maharashtra chief electoral officer (CEO) Nitin Gadre on Monday said, problems arising out of deletions in electoral rolls are inevitable as there is no fool-proof measure against errors.

"The exercise of deletions was concluded in August 2013 and names of as many as 50 lakh people were deleted. Through lot of publicity, we gave time to people to correct mistakes if any in the voter rolls, he said.

"CDs were given to all political parties and the deleted list was published on the website. Details of the proposed deletions were also circulated to political parties. There was no secrecy in the deletions," Gadre added.

He was responding to criticism of incidents where several people from Pune found their names were missing from the voter lists and protests were staged outside the collector's office.

After August 2013, 40 lakh new voters were added in the summary revision. "Another 16 lakh were added after 31 January 2014 including 6.8 lakh after March nine this year. Hence, a total of 56 lakh voters have been added which includes 23 lakh first time voters," he said.

Gadre said in Pune, 6.22 lakh names were deleted out of which 1,400 complained that their names have been mistakenly deleted.

"The scrutiny of the names is in progress and the Election Commission of India will take an appropriate decision in this regard," he said.

In Mumbai, he said 6.5 lakh names have been deleted during revision of electoral rolls. "So far, we have not received official complaints from citizens that their names have been mistakenly deleted," Gadre said.

He said for the first time, a massive deletion exercise was undertaken last year. We agree it is not fool proof because about 60,000 people were in the exercise to scrutinise electoral roll of eight crore. A person might not be found in the residence during one or two visits of the officials, neighbours might not know and the person may turn up after two months," he added.

Gadre said District Collectors of Mumbai city and Mumbai suburban will address the media on Tuesday giving a chronology of the deletions and how all stakeholders have been kept in the loop throughout.

User

COMMENTS

KAVIRAJ B PATIL

3 years ago

The enrolment process is assigned to local government employees who are least interested in this type of work. All leaders only pay lip service to democracy while trying their best to weaken it. Hence, this issue is nobody's child. Only NGO's can do something by filing a PIL to see that the whole process is simplified and foolproof.

Srinivas

3 years ago

I tried to check whether my name is on the electoral rolls - if you see how difficult it is to navigate through the site and check your name ... it is frustrating to say the least.At the worst, it feels like some kind of conspiracy.

IRCTC site seems so easy to use !

Sensex, Nifty reaches a new high again: Monday closing report

Nifty to keep itself above the day’s low; this may help it to keep trending higher

We had mentioned last week that the BSE 30-share Sensex and NSE 50-share  Nifty will head higher and may keep hitting new all-time highs. On Monday both the indices opened close to Thursday’s high and remained at that level 2.15 pm after which it gained strength and edged higher where it hit the  new high and closed near the day’s high.

Sensex opened at 22,645 while the Nifty opened at 6,789. Sensex hit a low of 22,637 and moved up to hit a high of 22,796 and closed at 22,765 (up 136 points or 0.60%) while the Nifty moved to the level of 6,825 after hitting a low of 6,787 and closed at 6,818 (up 38 points or 0.56%). The NSE recorded a volume of 72.11 crore shares.

The top five gainers among the other indices on the NSE are PSU Bank (2.64%), Infra (2.25%), Metal (2.21%), Auto (1.40%) and Bank Nifty (1.34%). The only four loser were IT (0.64%), Realty (0.31%), FMCG (0.30%) and Pharma (0.27%).

Of the 50 stocks on the Nifty, 28 ended in the green. The top five gainers were L T (4.14%), Sesa Sterlite (3.66%), Mahindra & Mahindra (3.63%), PNB (3.26%) and Bharti Airtel (3.18%). The top five losers were Wipro (6.97%), Hindustan Unilever (2.04%), Cairn (1.75%), DLF (1.35%) and Power Grid (1.12%).

Of the 1,544 companies on the NSE, 1,021 companies closed in the green, 451 closed in the red while 72 closed flat.

Reliance Industries came out with weak turnover growth and marginal growth in net profit for the March 2014 quarter in relation to March 2013 quarter. The stock was among the gainers in Sensex 30 stocks.

Sesa Sterlite was the top gainer in the Sensex 30 stocks after the Supreme Court on Monday allowed mining in the top iron ore exporting Goa state with an upper limit of 20 million tonne per year. The court also asked the state government to constitute an expert panel and submit a report regarding capping of output and other issues within six months.

Wipro was the top loser in the Sensex pack and also Group ‘A’ on the BSE. It has forecasted 0.3% decline to a growth of 2.02% in revenue from IT Services business at between $1.715 billion to $1.755 billion in Q1 June 2014 over Q4 March 2014.

According to news in the media JSW Steel has begun talks to purchase Welspun Maxsteel for about Rs1,000 crore. This move will enable securing continuous supply of cheaper raw material. The stock was among the top three gainers in ‘A’ group on the BSE.

Among the Asian indices KLSE Composite (0.55%) was the top gainer while Shanghai Composite (1.52%) was the top loser.

Japan's trade deficit widened to 1.45 trillion yen ($14.1 billion) in March, from 802.5 billion yen the previous month, the Ministry of Finance said today, 21 April 2014.

European indices were trading in the green and US Futures were trading higher.

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