The National Competition Committee (NCC) of Vietnam has ordered Zalo, a significant messaging app managed by VNG, to revise its new service terms following user complaints.
Consent Mechanisms and Implications
The NCC's directive instructs VNG to ensure that Zalo’s updated service agreement, involving personal data use, gains optional and genuine user consent. Users should not be forced to agree to data collection to continue using the app. The recent changes require users to either accept full data collection and sharing terms or face account deactivation after 45 days.
User Backlash and Market Response
The policy update met with strong opposition from local users, causing Zalo’s app ratings to drop significantly. With App Store scores about two out of five and negative trends on Google Play, users are turning to alternatives like WhatsApp and Viber, which topped download charts in Vietnam on 2023-12-30.
Regulatory and Market Context
Zalo controls about 85% of Vietnam's messaging market, with 78 million active users. New provisions limit VNG’s accountability for data-related issues and lack guarantees on service security. The NCC’s scrutiny aligns with international trends pushing against forced consent models, reflecting actions by European and Indian regulators. Immediate compliance is urged to uphold consumer rights.
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