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New bill proposes 'made in China' tags for mobile apps
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[49]Edward Graham Edward Graham By [50]Edward Graham,
Staff Reporter, Nextgov/FCW
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By [51]Edward Graham
| June 1, 2023 04:47 PM ET
The legislation would require large online app stores — including Apple’s App
Store and Google Play — to disclose the countries where their apps were
developed and are currently owned.
* [52]Mobile
* [53]Social Media
* [54]International
* [55]Industry
* [56]Congress
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A group of Republican senators introduced legislation Tuesday that
would require mobile application stores to prominently identify the
countries of origin for the services offered on their platforms, an
effort that the bill’s sponsors said would enhance transparency around
popular digital platforms — like TikTok — that have been accused of
sharing U.S. users’ personal data with the Chinese government.
The bill — introduced by Sens. Tim Scott, R-S.C., Roger Wicker,
R-Miss., and James Lankford, R-Okla. — would “require application
stores to publicly list the country of origin of the applications that
they distribute, and to provide consumers the ability to protect
themselves.”
The legislative proposal — called the [57]Know Your App Act — would
apply to app stores that have “more than 20,000,000 users in the United
States,” and would, in part, require them to denote “the country in
which the developer [of the app] is headquartered or principally
operates.”
The covered app stores would also be required to denote the country of
origin of the “beneficial owner” of the digital services that they
offer, which the legislation defined as “an individual who, directly or
in-directly, through any contract, arrangement, understanding,
relationship or otherwise” exerts “substantial control over the
developer,” or owns or controls “not less than 25% of the ownership
interests of the developer.”
If app developers do not provide accurate or updated information about
their affiliations with foreign countries or individuals to covered
online stores, then the digital stores would be required to issue
warnings to the offending platforms.
If an app fails to provide updated information by “90 days after the
date on which the first warning is issued,” then the offending platform
would be removed from the online store.
In addition to requiring large app stores to list the countries of
origin of their products, the legislation would — within 180 days of
its enactment, and then on an annual basis — require the Commerce and
Treasury secretaries to jointly submit to Congress a list of foreign
countries whose national laws could subject developers or apps to
government control “over content moderation, algorithm design or user
data transfers.”
If an app is affiliated with a country listed on the report to
Congress, then online stores would be required to “provide a
disclaimer, in a prominent display on the application store page, that
data from the application could be accessed by a foreign government.”
The proposal would also direct app stores to provide their users “with
the option to filter out applications whose primary country of origin
is a country of concern.”
In a statement, Scott — who [58]announced his 2024 presidential
campaign last month — said the bill would help Americans “make informed
decisions about the online services they use in order to protect their
data and security.”
“Requiring app stores to display an app’s country of origin is a
common-sense solution that can help them do just that,” he added.
“Parents shouldn’t fear that their family’s online privacy and security
could be compromised when unknowingly using an app owned by a foreign
adversary.”
Federal agencies and lawmakers have publicly shared national security
and privacy concerns in recent years about the ties between popular
digital apps and adversarial nations, with officials expressing
particular alarm about TikTok, which is owned by the Chinese company
ByteDance.
In an April [59]blog post, analytics firm Apptopia noted that four of
the five most downloaded apps in the United States — CapCut, Shein,
Temu and TikTok — are affiliated with Chinese companies. The bill’s
sponsors specifically cited these ties and said in a [60]press release
that “China’s national security laws provide a pathway for the Chinese
Communist Party to compel application developers to control an
application’s content or user data.”
The U.S. intelligence community and federal regulators have [61]warned
that TikTok users’ personal information — including locations, browsing
histories and biometric data — could be shared with the Chinese
government, and Congress voted late last year to ban the app from all
government devices.
Lawmakers in both chambers of Congress have also introduced a flurry of
bills in recent months designed to either ban TikTok, or empower the
White House to restrict the use of the app and other technologies
originating from China.
One [62]proposal, introduced in March by Sens. Mark Warner, D-Va. — the
chair of the Senate Intelligence Committee — and John Thune, R-S.D. —
the Senate minority whip — would give the Commerce Department the
authority to “review, prevent and mitigate information communications
and technology transactions that pose undue risk to our national
security.”
Some Democrats and Republicans, however, have [63]pushed back on
imposing an outright ban on TiKTok and other digital services tied to
hostile foreign governments, citing free speech concerns.
Lankford framed the Know Your App Act as an informed alternative to
some of the more draconian legislative proposals that have been floated
by lawmakers, saying in a statement that “Americans should remain free
to buy items from wherever they want, but the least Big Tech can do is
label where Americans’ money is going when they download in the app
store.”
“We already see the ways the TikTok app is a dangerous extension of the
[Chinese Communist Party] that is collecting every user’s personal data
and all of their contacts,” he added. “I want the ‘Made in China’ label
and labels for any other countries where apps like TikTok originate to
be clearly marked when and where they are downloaded.”
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