China gives technology groups a month to fix distrust practices

Chinese tech companies have been given a month to fix anti-competitive practices and publicly pledge a week as ecommerce group Alibaba is at risk of suffering the same fate, including its weekly vacation. 2.8 billion was fined.

The ultimatum was issued on Tuesday by China’s market and internet regulator and tax administration at a meeting with 34 of the country’s top tech companies, including Tencent, ByteDance, Maituan and Alibaba.

In a statement, regulators said they had a positive outlook on China’s online “platform economy” but wanted to use “Alibaba’s caution case” to warn other companies.

The move represents one of the largest attempts by Chinese regulators to break the monopoly practices of Chinese Internet groups, many of which have created fivefolds designed to trap consumers and merchants in their Internet ecosystems.

Companies founded by Chinese tech billionaire Jack Ma, including Alibaba and Fintech Ant Group, have run the campaign. It wasn’t just Alibaba Fine A record amount but the ants are being forced Separate Its nding pays and pays business and possibly shares data with competitors.

Jack Ma has disappeared from the public eye after criticizing regulators at a forum in Shanghai in October last year. The following month, the Ant Group began a crackdown, forcing a planned $ 37bn initial public offer.

In contrast, Alibaba and its competitors have been given a one-month general amnesty for conducting a “comprehensive self-investigation” of their operations and “completely correcting” any issues, after which they will need to make a public commitment to abide by the rules and “take social supervision.” .

At the end of the month-long penalty-free period, the market regulator said it would conduct its own investigation and “severely punish” companies without consent. Representatives of local offices of market regulators in cities across the country also attended the meeting.

Examples of online “walled gardens” in China include clips from the video-sharing group ByteDance directly on Tencent’s social media app WeChat, or on Alibaba’s Taobao ecommerce application to prevent users from delivering products with Tencent’s WeChat pay. Regulators said companies needed to make sure “their ecosystem was open” and were allowed to share.

Regulators said they specifically focused on removing “choose between the two”, forcing platform merchants like Alibaba to sell, not just competitors, on their own sites. Alibaba was fined for its incredible breaches, including its mandatory exclusivity practice.

Restaurants across the country have reported similar incidents trying to sell through food delivery applications such as Metitan or Alibaba Element.

“Small traders who were forced to choose parties often do not dare to complain. . . Now the platforms have to actually stop doing that [choose one of two], ”Said Lee Chengdong of ecommerce think-tank Haitun. “The regulators only made it clear that they would punish [violators] Tough. “

Other issues that organizations must include in their “sincerely correct” issues The new rule of disbelief For the Internet sector published in November.

These include the acquisition of outsourcing competitors, “burning money” for market share, the use of data and algorithms for discriminatory pricing, and tax evasion.

Companies like Pindududio and Metuan could suffer as a result of the ban on the use of subsidies for customers to use the ropes, which have offered heavy discounts to expand their grocery supply business.

Additional report by Nian Liu

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