{"id":109767,"date":"2021-03-17T10:30:59","date_gmt":"2021-03-17T10:30:59","guid":{"rendered":"https:\/\/fin2me.com\/?p=109767"},"modified":"2021-03-17T10:30:59","modified_gmt":"2021-03-17T10:30:59","slug":"japan-to-probe-line-after-reports-it-let-chinese-engineers-access-user-data","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/japan-to-probe-line-after-reports-it-let-chinese-engineers-access-user-data\/","title":{"rendered":"Japan to probe Line after reports it let Chinese engineers access user data"},"content":{"rendered":"
TOKYO (Reuters) – Japan\u2019s government said on Wedneseday it would investigate messaging app Line, owned by SoftBank Corp\u2019s Z Holdings Corp, after Japanese media reports that it let Chinese engineers at a Shanghai affiliate access Japanese users\u2019 data without informing them.<\/p> Under Japanese privacy regulations, companies have to let users know when their personal data is sent overseas, public broadcaster pubic broadcaster NHK and other local media reported earlier.<\/p>\n \u201cWe can\u2019t say yet if Line breached regulations or not, and we are conducting an investigation to find out,\u201d a government official responsible for overseeing privacy regulations told Reuters. If Line is found to have acted improperly then the Cabinet Office can direct it to make improvements, he added.<\/p>\n \u201cThere hasn\u2019t been anything that breached legal or regulatory boundaries,\u201d a spokesman for Line said.\u201d We will continue to respond to laws and regulations in all jurisdictions, including Japan.\u201d<\/p>\n In a statement posted later on its website, the company apologized for causing any concern and for not adequately explaining policies regarding data management to users. No inappropriate access occurred, it added.<\/p>\n Four engineers at a company in China, who perform system maintenance for Line, were allowed to access servers in Japan from 2018 that contained the names, telephone numbers and e-mail addresses of users, local media said.<\/p>\n The reports come as Japan tightens laws and regulation around the use and storage of personal data held by internet companies.<\/p>\n Line, which has 186 million users worldwide – of which just under half are in Japan – has since blocked access to user data at the Chinese affiliate, the company spokesman said.<\/p>\n Line this month became part of Z Holdings, formerly Yahoo Japan, creating a $30 billion domestic internet heavyweight to compete against local and U.S. rivals.<\/p>\n Messages sent via Line can only be read by the sender and receiver as the app, like other messaging apps, encrypts message content end to end.<\/p>\n Z Holdings is controlled by SoftBank Corp through holding company A Holdings, which is jointly owned by SoftBank Corp and South Korea\u2019s Naver Corp, the former operator of Line.<\/p>\n Z Holdings, which plans to invest 500 billion yen ($4.58 billion) in technology over the next five years, announced the Line tie-up last year but was forced to delay the move from October because of the COVID-19 pandemic.<\/p>\n Line has expanded its business into cashless payment and more recently telemedicine.<\/p>\n Shares of Z Holdings, which also controls fashion retailer Zozo Inc and office supplies firm Askul Corp, dipped 1.1% to 611 yen, compared with the Tokyo exchange\u2019s TOPIX index which was flat.<\/p>\n ($1 = 109.1500 yen)<\/p>\n (This story removes redundant word from headline)<\/p>\n