Yahoo Inc. has become the latest US tech giant to withdraw from China over what it termed “increasingly challenging business and legal environment” in the country. Starting November 1, Yahoo sites became inaccessible in mainland China, as the company cited its commitment to the “rights of our users and a free and open internet.” Days before, US gaming company Epic Games said it will shut its popular game “Fortnite” due to Beijing’s latest curbs on the gaming market. Last month, Microsoft announced to shut operations of its business-oriented social network LinkedIn in China due to what it described as “significantly more challenging operating environment and greater compliance requirements.”

Jack Ma makes first Hong Kong visit since China’s crackdown on Alibaba

China has intensified its regulatory crackdown on big tech companies with anti-monopoly and data security laws since 2020. Alibaba was fined a record $2.75 billion in April over alleged violations that included prohibiting vendors that wanted to use its platforms from dealing with Alibaba’s competitors. 

China tightens political control of internet giants

Tencent, live-streaming site Kuaishou, microblogging platform Sina Weibo and social media site Xiaohongshu have also faced fines.

In September, Alibaba pledged $15.5 billion by 2025 for President Xi Jinping “common prosperity” initiative. Alibaba co-founder Jack Ma has been keeping a low profile ever since cancellation of the potentially record-shattering $37 billion IPO for his Ant Financial group in November 2020 by Chinese regulators.

Why China’s ‘toxic’ work drinking is back in focus

This was a month after China’s top legislature voted to pass the Personal Information Protection Law (PIPL) at the closing meeting of a regular legislative session of the Standing Committee of the National People’s Congress. Chinese media described the law as one of world’s toughest on personal data security, saying it would “significantly harder and more expensive for tech firms in China to access and use consumer information.”

The law has been compared to privacy-focused laws, such as GDPR in Europe, but critics also point to the possibility of PIPL being used in much stricter way due to China’s political structure.

Bitcoin mining has been hit by a blanket ban on the trading of crypto-currencies.