Business Overview
Regulation of Internet Information Services and the dissemination of advertisements of certain
As a subsector of the telecommunications industry,
Internet information services are regulated by the
Administrative Measures on Internet Information
Services, or the ICP Measures. “Internet information
services” are defined as services that provide
information to online users through the Internet.
Internet information service providers, also called
ICPs, that provide commercial services are required
to obtain an operating license from the MIIT or its
provincial counterpart.
To the extent the Internet information services provided
relate to certain matters, including news, publication,
education or medical and healthcare (including
pharmaceutical products and medical equipment),
approvals or filings must also be obtained from the
relevant industry regulators in accordance with the
laws, rules and regulations governing those industries.
Regulation of Advertising Services
The principal regulations governing advertising
businesses in China are:
• the Advertising Law of the PRC (2021, as
amended);
• the Advertising Administrative Regulations (1987,
as amended);
• the Administrative Regulations on Internet
Information Search Services (2016); and
• the Internet Advertising Measures (2016).
These laws, rules and regulations require companies
such as ours that engage in advertising activities
to obtain a business license that explicitly includes
advertising in the business scope from the SAMR,
formerly the SAIC, or its local branches.
Applicable PRC advertising laws, rules and regulations
contain certain prohibitions on the content of
advertisements in China (including prohibitions on
misleading content, superlative wording, socially
destabilizing content or content involving obscenities,
superstition, violence, discrimination or infringement
of the public interest). Advertisements for anesthetic,
psychotropic, toxic or radioactive drugs are prohibited,
70 Alibaba Group Holding Limited
other products, such as tobacco, patented products,
pharmaceuticals, medical instruments, agrochemicals,
foodstuff, alcohol and cosmetics, are also subject to
specific restrictions and requirements. Advertisers,
advertising operators or advertising distributors may
be subject to civil liability if they infringe the legal rights
and interests of third parties, such as infringement of
intellectual proprietary rights, unauthorized use of a
name or portrait and defamation.
On June 25, 2016, the Cyberspace Administration of
China promulgated the Administrative Regulations on
Internet Information Search Services, or the Internet
Search Regulations, which came into effect on August
1, 2016. According to the Internet Search Regulations,
Internet search service providers must verify
paid-search service customers’ qualifications, limit the
ratio of paid-search results on each web page, and
clearly distinguish paid-search results from natural
search results.
The Internet Advertising Measures, which were
promulgated by the SAIC on July 4, 2016 and came
into effect on September 1, 2016 set out, among
other things, the following requirements for Internet
advertising activities:
• online advertisements for prescription medicine
or tobacco are not allowed, while advertisements
for special commodities or services such as
medical treatment, pharmaceuticals, food for
special medical purposes, medical instruments,
agrochemicals, veterinary medicine and other
health foods must be reviewed by competent
authorities before online publication;
• Internet advertisements must be visibly marked
as “advertisement,” while paid-search results
must be obviously distinguished from natural
search results; and
• Internet advertisements must not affect users’
normal use of the Internet; “pop-up ads” must
be clearly marked with a “close” sign and be
closable with one click; and no deceptive means
may be used to lure users into clicking on
advertisements.