China Business and Finance Update
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After the Chinese market regulator said it would strengthen antitrust and data restrictions on platforms, the share price of China Internet Group fell, marking the latest stage of Beijing’s crackdown on the industry.
China’s antitrust regulator, the State Administration for Market Regulation, released on Tuesday a draft rule prohibiting unfair competition among Internet companies, a move that may significantly strengthen the government’s supervision of China’s leading technology platforms after it is passed this year.
After the announcement, the share prices of Chinese Internet and e-commerce groups Alibaba, Tencent and JD.com fell 2%, 3% and 4.6% respectively in Hong Kong transactions.
China’s market regulators have responded to “Self-correction“From dozens of Internet companies, including ride-hailing platform Didi Chuxing, the company became a specific target of regulatory review after its listing in the United States in June. In April, the State Administration for Market Regulation set a record for Alibaba. Fined $2.8 billion Abuse of its dominant market position.Suppression has Shaved billions The market value of China’s technology industry in US dollars.
Anqi Zhang, an expert on Chinese antitrust legislation at the University of Hong Kong, said that these measures will target practices including false advertising, fraudulent online reviews, unfair competition, interoperability issues, data protection and consumer privacy issues.
Draft rules that may be revised after the negotiation period prohibit groups from participating Common practice For example, use user data to understand how customers behave and influence them not to choose competitors’ products or services.
Limit the traffic to other platforms by blocking hyperlinks to competitors or using false transactions or comments to disrupt competition. Also banned.
Zhang of the University of Hong Kong added that the rules announced on Tuesday allow “the State Administration for Market Regulation to take more flexible actions to resolve various regulatory issues caused by the platform economy”.
The Communist Party of China has made anti-monopoly regulation at its core A wide range of sports Restrict the behavior of Internet groups that it believes harms social stability and national security.
Analysts said that part of the reason for the event was users’ Perceptual exploitation Powered by powerful Internet companies.
Chinese legislators are planning to modify the country’s Antitrust legislation This year.
The Cybersecurity Regulatory Agency of China’s Cyberspace Administration of China announced last month that a large amount of user data held by Internet companies has been pushed to the forefront of regulatory crackdowns. investigation Didi entered Didi a few days after its blockbuster listing in New York.