Chinese communist party (CCP) has continued to tighten tech giants and e-commerce giants by implementing new rules. It’s very clear China issues new rules targeting tech firms.
CCP wants to check
monopoly of some big companies after Jack Ma criticized state regulatory
approvals last year. The rules are likely to pressure firms such as Alibaba,
JD.com, Ant Group and Tencent which dominate e-commerce in China.
It also prohibits companies from using
data and algorithms to manipulate the market. Chinese government feels new
rules will stop monopolistic behavior in the platform economy and safeguards
fair competition in the market. China’s Politburo, the top decision-making body
of the Communist Party, pledged in a meeting at the end of last year to
strengthen anti-monopoly efforts in 2021. Less than two weeks after the
meeting, China kicked off an investigation into Alibaba Group Holding Ltd. in
December for allegedly monopolistic practices.
China’s market regulator has released
new set of anti-monopoly guidelines, targeting internet platforms. These are
aim to tighten existing restrictions for the tech giants like Huawei, Alibaba,
Baidu and Tencent. New guidelines will prohibit forcing merchants between the
country’s top internet players. This will put pressure on not only e-commerce
sites but also payment services like Alipay and WeChat pay. New restrictions
will stop companies from price-fixing and restricting technologies.
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