The end of 2020 was particularly difficult for Chinese big techs. Indeed, the authorities have decided to regulate them more and it seems that the trend will be similar in 2021. As reported the South china morning postThe government plans to tighten its regulations against technological giants.
Zhang Gong, head of the State Administration for Market Regulation (SAMR), has indeed set the tone for 2021: “ Nobody is allowed to be outside of antimonopoly or competition rules, whether they are online or offline businesses. “He also said that his agency’s priority this year is to guide the decisions of the Chinese leadership.” Strengthening of antimonopoly rules and preventing disorderly capital expansion “.
In China, a new internet regulation is associated with authoritarianism
A meeting recently organized by the Communist Party Unit, which is in charge of the country’s judicial and police system, endorsed Zhang’s statements: Respect ” the application of antimonopoly law as well as unfair competition and judicial work Is essential in 2021.
The Chinese judicial system will therefore investigate how to further define whether companies have a monopoly, but also how to decide about the collection and use of data in order to better protect consumer rights in the digital domain. With this in mind, the authorities will improve competition law and amend the 2008 Antimonopoly Act. Among other things, it regulates the abuse of a dominant position or the non-declaration of mergers between companies that could lead to a monopoly situation.
As early as last November, the authorities suspended the IPO of the Ant Group and then announced new regulations against technology giants and especially against fintech players. China is indeed the world’s largest market in this area, especially with Moloch Alipay, a subsidiary of the Ant Group that has also been hired to restructure its operations.
SAMR has also decided to open an antitrust investigation into the Alibaba Holding Group, the e-commerce giant, for abuse of a dominant position. He is accused of monopolistic behavior by forcing retailers to choose only one online platform to sell their products.
One thing is certain: 2021 is unlikely to prove to be a milder one for the companies Jack Ma founded …