Vietnam competition watchdog summons VNG over Zalo user data terms

The Vietnam Competition Commission (VCC) has summoned tech unicorn VNG (UPCoM: VNZ) after its messaging app Zalo abruptly updated its terms of service, requiring users to agree or face account deletion.

In a summon sent to VNG, the commission, which operates under the Ministry of Industry and Trade, asked the company to be present for a meeting scheduled for the morning of Wednesday to discuss the collection and use of user data and the provision of services on Zalo.

The regulator said it had received multiple complaints related to how Zalo collects and uses user information, prompting the review as part of its mandate to protect consumer rights.

Under the request, VNG must provide documentation on its legal status and role in owning, managing, and operating Zalo, as well as details on the app’s user base.

The company has also been asked to submit all versions of Zalo’s terms of service applied in Vietnam over the past 12 months, including their issuance dates, effective periods, and how updates were notified to users.

The commission further asked VNG to clarify the process for amending the terms, how users are notified, whether acceptance of updated terms is mandatory, and what consequences apply if users refuse.

In addition, VNG must provide all documents related to the collection, processing, storage, sharing, and protection of personal data on Zalo. If no standalone policy on user data protection exists, the company has been asked to explain how such information is presented, where it is published and how users can access and understand how their personal data is handled.

The regulator also requested details on how Zalo’s services are organized and operated, the information flows during use, and the options available to users when they agree or disagree with data-related terms.

Zalo, Vietnam’s most widely used messaging platform with more than 80 million users, recently notified account users that they must accept updated terms of service to continue using the app.

The new terms allow Zalo to collect and share personal data, including basic information such as phone numbers, names, and identification details, as well as sensitive personal data.

Users who do not agree will lose access to the service, and their accounts will be automatically deleted after 45 days if they do not change their decision. The update has triggered public backlash, with users arguing the terms infringe on data privacy rights.