Use public power to promote startups? The Ministry of Education endorsed a commercial app, regardless of doubts and protests

IME, once an unknown educational app, now probably has a $10 billion valuation. Is it another promising and fast-growing unicorn which has keenly caught the future trend? Not really. From zero to 10 billion, IME used only the government’s endorsement and enforcement, getting 190 million users within months.

It was discovered by media when many parents in Guangzhou, capital of Guangdong province, raised doubt about the so-called official app IME. They were required by primary and middle schools to download IME and upload private information such as ID numbers and home address on the platform. The Ministry of Education issued a notice on March 25th, asking all primary and middle schools nationwide to organize parents or other legal guardians to fill in the forms on IME.

According to Nanfang Daily, students not only in Guangzhou but in most part of China have been required to download IME, and massive private information was uploaded to the platform. The Ministry of Education said on September 29th that they had already collected information of 190 million students through IME.

So what is IME? What’s the relationship between IME and the Ministry of Education?

In short, IME is an ordinary startup and no doubt a commercial instant messaging platform. The Ministry of Education has stated for several times that IME was supported by the Minister, and all the information would not be used in commercial purpose. However, according to IME’s product description, IME is an instant messaging tool specifically for educational use. Uploading private information is only the first step. To achieve its instant messaging functionality, IME will use some private information to group parents and students, which may violate users’ right of privacy.

The reasons why the Ministry of Education endorsed IME are uncertain. The developer of IME provides the service for free, but it does not erase users’ doubt. Why IME? Why not other companies? Furthermore, the Ministry of Education used its public power to promote a commercial product. It may have violated the Anti-Unfair Competition Law of the People's Republic of China and Anti-monopoly Law.

Parents’ main concern is the safety of IME. Although IME is endorsed by the government and seems a semi-official app, it is in essense a commercial product and developed by an unknown startup. Some parents said that if the developer uses all the information and data, it will definitely be a gold mine for commerce.

The capital market also discovered its commercial value. IME already has 190 million users and focuses on education industry and instant messaging. Its valuation could easily be over $10 billion.

The problem now is whether IME will remain non-commercial as the Ministry of Education has promised, and who will take responsibilities if information leakage does happen. Qtong Education Co. Ltd. which has spent several years promoting the digitalization of education, now faces fierce completion from IME. IME will no doubt stir the industry sector.