Internet companies fight against corruption

China's leading internet companies, including Douyin, Tencent and Meituan, have ramped up efforts to combat internal corruption this year, underscoring a zero-tolerance policy toward fraudulent and corrupt activities.

Last week, Douyin, one of the largest video-sharing platforms in China, released its anti-fraud report for the first half of the year, revealing significant actions taken against internal corruption. The report said commercial bribery and duty encroachment were the most prevalent forms of corruption within the company.

According to the report, Douyin investigated 125 cases of fraudulent activities during the first six months of the year. Those investigations led to the dismissal of 88 employees for violating company integrity regulations, with 17 who were suspected of crimes handed over to judicial authorities.

The report detailed eight cases that were referred to law enforcement.

In one instance, a former Douyin employee surnamed Zhou exploited his position to provide undue assistance to external influencers in exchange for kickbacks. Zhou was dismissed and handed over to public security authorities for suspected criminal activities.

In another case, a former product development and engineering employee, surnamed Cao, colluded with external personnel to seek personal gains through his position. Cao was also dismissed and referred to authorities.

Embezzlement has been another focus of anti-corruption efforts across China's tech industry.

In February, Tencent released its 2023 anti-fraud report, which disclosed that over 70 cases of rule violations were addressed last year. As a result, more than 120 employees were dismissed, and nearly 20 people suspected of crimes were handed over to public security authorities.

Tencent's report detailed 17 typical cases, including 11 involving the embezzlement of company assets. In one case, two employees, Gao Qiyuan and Wang Qi, were convicted of embezzlement and sentenced to four years and three and a half years in prison, respectively.

Corruption cases often involve employees working in upstream supply chains and downstream sales channels of the internet firms. In February, Meituan, another leading Chinese tech firm, announced that it assisted authorities in investigating and prosecuting 93 individuals, both internal and external, last year for suspected criminal activities. The company released details of nine cases, seven of which involved procurement processes for fresh food, snacks, warehouse renovations and other areas.

The companies said they are committed to strengthening their anti-fraud measures. Meituan announced plans to focus on comprehensive anti-fraud governance in key areas such as procurement and major business collaborations this year. Tencent said in its annual report that it aims to prevent, detect and combat all forms of fraudulent activities by establishing robust anti-fraud systems and comprehensive risk management frameworks. Douyin also emphasized its commitment to continuously improving its systems and intensifying efforts to combat fraudulent activities, including commercial bribery and embezzlement.