For the first time, China has drawn up extensive rules to prevent monopolistic practices by large internet companies. In this way, Beijing wants to put an end to the growing dominance of web shopping groups, Alibaba and Tencent. Both in the field of online shopping and gaming, they now dominate the market.
For example, the Chinese government has issued a series of rules to curb anti-competitive behaviour. Think of a ban on the sharing of sensitive consumer data, a ban on alliances squeezing smaller rivals and subsidising below-cost services to eliminate competitors.
“This is a turning point,” says Ma Chen, a competition expert at the Chinese law firm Han Kun Law Offices. According to him, Chinese regulators are “controlling because these platform companies have become too powerful and hit every corner of life”.
More and more attention has been paid to the monitoring of the tech sector worldwide in recent times. For example, Facebook and Google are under a magnifying glass in Europe and the United States. In China, technical gadgets from companies like Alibaba and Tencent put pressure on citizens ‘ privacy. Technology such as facial recognition to big data analysis is being used more and more frequently.
Recently it became clear that there was a new course in China. The Chinese authorities are stopping fintech’s long-awaited ANIPO due to upcoming regulatory changes. The Alibaba daughter’s going public should have been the biggest IPO ever.
The new Chinese rules are not yet completely final. There is still a process in progress in which the Asian cartel watchdog asks for reactions from interested parties.