Transforming the Landscape of Online Platforms and Advertising in Kazakhstan
26 Jul 2023
Kazakhstan
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In June of 2023, the Mazhilis, the lower house of the Parliament of Kazakhstan, took a significant step forward in shaping the future of online platforms and advertising. The second reading of the Draft Law on Online Platforms and Online Advertising brought forth noteworthy changes to existing laws which aim to regulate the dynamic digital sphere in Kazakhstan.
1. Introduction of Fresh Concepts
The Draft Law introduces novel concepts, such as online platforms, online advertising, influencers (bloggers), instant messaging services, sponsored content, and targeted online advertising. These definitions aim to establish a comprehensive regulatory framework for these aspects of the digital landscape.
2. Language Requirements for Online Platforms
Online platform owners are now obligated to incorporate the state language, Kazakh, into their interfaces. Furthermore, they must implement an automatic translation system to convert user-generated content into Kazakh.
3. Appointment of Legal Representatives
Owners of online platforms and instant messaging services with a substantial user base - over 100,000 daily accesses per month - must now appoint a legal representative in Kazakhstan. This representative will interact with the authorized body, ensure compliance with court decisions, and respond to injunctions and representations from state entities. It is important to note that this obligation excludes internal corporate services and email platforms like Outlook and Gmail.
4. Inspections of Online Platforms
Online platforms will undergo inspections in a non-intrusive manner and no more than once per quarter. These inspections, designed as a preventive measure, will not involve physical visits to the platform's premises. In the event of identified violations, recommendations for rectification will be provided, and platforms will have three working days to address them.
5. User Protection and Content Management
To safeguard user privacy and security, online platforms must establish a program to determine user numbers, employ mechanisms to combat illegal content, and provide privacy policies to users during the account registration process.
6. Reporting Threats to Law Enforcement
In the event of identifying information that poses a threat to the life or safety of Kazakh citizens, online platforms must promptly notify law enforcement authorities. This requirement underscores the government's commitment to ensuring public security in the digital realm.
7. Annual Reports on Systemic Risks
Online platform owners must publish annual reports that identify systemic risks and propose recommendations to mitigate them. This transparent approach encourages platforms to proactively address potential issues and enhance the overall digital ecosystem.
8. Transparency in Online Advertising
Both users and platform owners will be obligated to transparently identify online advertisements as sponsored content or targeted advertising. A subordinate act will be developed and adopted to establish specific procedures for labelling such advertisements.
9. Advertising Information Repository
Online platforms must create a repository to store advertising information for one year following its last online display. This measure facilitates regulatory oversight and enables investigations related to advertising when necessary.
10. Accountability for False Information and Illegal Content
The Draft Law explicitly defines the responsibilities of users and influencers to refrain from disseminating false information or publishing illegal content, as outlined in the Administrative Code. Violations of these provisions may result in fines of up to 100 MCIs (around €715).
While the Draft Law on Online Platforms and Online Advertising is still undergoing development, the approval of the second reading demonstrates Kazakhstan's commitment to adapting its legislative framework to address the changing landscape of digital platforms and advertising. The introduction of new concepts and the proposed amendments signal the country's determination to foster a responsible and regulated digital environment.