Tough China Data Security Plan Has Network Operators on Alert

Alphabet Inc.'s Google, Apple Inc., and other network operators in China face new costs and potentially severe penalties under a draft law that would expand hosts’ liability for data privacy breaches.

The Cyberspace Administration of China’s administrative measures for data security would make companies responsible for policing data privacy among third-party apps on their systems. If an app violates the law, China would hold the host responsible, according to lawyers.

The draft law would mostly affect Chinese companies, including Tencent Holdings and Baidu. Attorneys say many network operators are already preparing for the new order, and those ...