Vietnam approves a cybersecurity law to tighten control on tech companies operating in the region.
The law takes effect at the start of next year and requires the likes of Facebook (NASDAQ:FB) and Google (GOOG, GOOGL) to store “important” personal data on Vietnamese users locally and to open offices there.
Social media companies will have to remove offending content within a day of receiving a request from authorities.
Critics warn the law could cause financial harm and quash online dissent.
About 55M Vietnamese are regular users of social media, according to We Are Social and Hootsuite data. Vietnam ranked seventh in the list of most active Facebook-using countries.
Facebook shares are up 0.2% premarket to $191.87.
Alphabet shares are down $0.49 to $1,129.50.
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