Posted April 09, 2018 13:37:24 Australia’s ad-tech company iAd has agreed to move its advertising network to China amid escalating political tensions between the United States and China, according to people familiar with the matter.
iAd, a joint venture of Alibaba Group Holding Ltd.
and Adelphia Media Holdings Ltd., was set to begin operations in the Chinese market in March 2019, according a company filing with the U.S. Securities and Exchange Commission.
The move will come as the company has faced accusations of misleading consumers about the effectiveness of its ads.
iAD, which is based in Australia and runs ads on a range of websites including CNN, BuzzFeed and CNNMoney, has been the subject of several U.N. sanctions over the past year over the use of anti-money laundering and anti-corruption measures.
The company has said it would seek to return to Australia to operate in 2019, but it has not yet made any final decisions on the matter, said one of the people familiar who asked not to be named because the discussions were private.
The deal was announced on Tuesday at an event at the headquarters of iAd in Sydney, Australia.
The people, who asked to remain anonymous because they were not authorized to speak publicly about the matter publicly, said that the deal was not finalized until the end of the year.
iad has been in Australia for more than a decade and has its headquarters in Sydney.
iAAP, a rival to iAd which operates on a separate platform, is also planning to move ahead with the Australian rollout, said the people, one of whom said the company had not decided what its plans would be for the U., China and South America.
The announcement is a victory for iAd as it seeks to secure an audience in a growing market, said Andrew Sibbitt, chief executive officer of the global advertising agency The Ogilvy Group.
iAP is one of several tech companies that has been hit by escalating political rhetoric from the United Nations over human rights violations in China and North Korea, and it has faced regulatory pressure over its role in blocking Chinese internet traffic.
iThei’s move to Shanghai comes as Beijing is also moving to impose new restrictions on internet access and block content, according at least one of those companies, the South China Morning Post newspaper.
In November, China’s top court blocked a lawsuit by iAd against a government agency, saying it was seeking to force the company to stop using anti-infiltration measures to block content.
i ad had argued that its anti-content block measures were legal and were needed to protect the interests of the company, which has over the years employed Chinese contractors.
Beijing has been pressing to impose restrictions on the internet, as part of a crackdown on dissent, as well as the emergence of online black markets.
iAmi, a subsidiary of Alibaba, was founded in Hong Kong in 2009 and has operations in Asia, Africa and the Middle East.
The Chinese government has also sought to impose online censorship, with the aim of reducing internet traffic in the region.
i Ad’s moves come at a time when China is also trying to impose censorship of online content, including social media, and in a bid to boost domestic market growth.
i ami, which employs more than 100,000 people in China, has struggled to attract customers in the country despite a booming online market.
A report in January by the state-run Xinhua news agency said the Chinese government was attempting to push internet companies to restrict online content and block it through a new set of rules.
iami has faced a barrage of criticism for blocking access to popular Chinese media such as Tencent, Tencent News and Tencent Pictures, which were shut down by the government.
The newspaper cited an unnamed source close to the Chinese authorities, who said Chinese officials were using internet service providers to push content through censors.
iAnad’s move will further complicate the Chinese Communist Party’s efforts to control online information, as Beijing seeks to limit access to foreign news and commentary.
i AP reported that the Chinese Government said in a statement that the move was aimed at protecting national security and fighting threats from overseas, and that the country had taken steps to make its internet and social media services more secure.
“We believe the Chinese people’s interest is protected, and we will continue to fight against any interference in the interests and national security of the country,” the statement read.
i Anad said in its statement that it would work with its customers to ensure that users’ personal information was kept private.
i iAd’s move follows that of iAmis, which had been blocked by the Chinese People’s Liberation Army (PLA) and other state agencies.
The People’s Daily newspaper reported that Chinese officials had recently asked iAmia to stop blocking popular Chinese social media and internet content, and to use technology to “improve security