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China is killing monopolists … a blow to Alibaba and the tech giants

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Q. China has raised the giant Alibaba Company and similar technology giants by issuing new rules aimed at killing monopolistic practices.

The China Market Authority issued new anti-monopoly directives today, which would tighten restrictions imposed on the country’s technology giants.

The new rules put into effect an antitrust bill passed in November.

Strict procedures
The rules spell out a set of monopolistic practices against which regulators intend to crack down on.

The directive is expected to add new pressure on major Internet services, such as e-commerce sites such as Taobao and T-Mall of the Alibaba Group.

The rules also deal a blow to Financial services will include Antgroup’s Alipay or Tencent Holdings WeChat Pay.

The rules published by the State Administration for Market Regulation on its website prohibit forcing merchants to choose from among the major companies on the Internet, a practice that has been followed for a long time in the market.

Stop monopolistic behaviors
The administration said that the new directive “will stop monopolistic behaviors in the platform economy and protect fair competition in the market.”

It said it would prevent companies from manipulating prices, restricting technologies, and using data and algorithms to manipulate the market.

In recent months, China has begun to tighten controls over the country’s technology giants, retreating from the laissez-faire approach.

In December, regulators launched an antitrust probe into the Alibaba Group after it abruptly suspended its $ 37 billion initial public offerings (IPO) plan for Ant Group payments.

And they warned the company at the time of practices such as forcing merchants to sign exclusive cooperation agreements at the expense of other online platforms.

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