According to mainland China’s “Caixin” and other media reports, on April 13, the CPC General Administration of Market Supervision, together with the Central Internet Information Office and the General Administration of Taxation, held an administrative guidance meeting for Internet platform enterprises. The meeting affirmed the positive role of the platform economy, while pointing out that it should “give full play to the warning effect of the Ali case”, and requested the platforms to conduct a comprehensive self-examination and self-inspection for one month, and thoroughly rectify each item.
According to the report, in the anti-monopoly field of hot issues, the meeting clearly pointed out that “forced implementation of ‘two choices’, abuse of market dominance, the implementation of ‘pinch mergers and acquisitions’, burning money to seize the ‘community group purchase’ market, the implementation of the ‘community group purchase’ market. community group purchase’ market, the implementation of ‘big data killing’, disregard for counterfeiting, information leakage and the implementation of tax-related violations must be seriously rectified.”
In the report, AFP noted that along with the rapid changes in China’s digital life, tech giants such as Ali, Jingdong and Tencent have made huge profits in the relatively lax legal environment of mainland China. However, Beijing has tightened its grip on monopolistic practices, misuse of consumer data and other actions in recent past months, and the interview shows that the Chinese Communist authorities are far from finished scrutinizing large tech companies.
Tencent, Baidu and other leading technology companies are among those interviewed
The official website of China’s State Administration of Market Supervision published an article by the Economic Daily, “Comprehensive rectification shows new weather of platform economy,” which begins, “The policy bottom line cannot be crossed, and the legal red line cannot be touched. With Ali’s case as a symbol, the platform economy regulation has opened a new chapter. Which put forward the rectification “must not engage in paper rectification, over the rectification, must not avoid the heavy on the light, take refuge in the easy, to carry out strictly in accordance with the law”, and let the community, the media and the majority of consumers to monitor.
According to the Observer, the interviewed companies are Akiyip, Baidu, Shell House, Drip, Dangdang, Doddle, Jingdong, Racer, Meituan, Daily Fresh, Qihoo 360, Where to go, Sogou, Weidian, 58 Tongcheng, Sina Weibo, Byte Jump, Beili Beili, Dingdong buy food, Hungry, Gome, Boxma Fresh The company’s main business is the Internet platform, which includes the following companies: Pinedo, Ctrip, Little Red Book, ReadWrite, Suning Tesco, Ali, Beibei.com, Mushroom Street, Netease (Yanxiang), Yunji, Vipshop, and Tencent. Representatives from these 34 Internet platform companies attended the conference.
Vey-Sern Ling, a senior analyst at Bloomberg, said the move “is positive because [regulators] gave the platforms a month to investigate themselves instead of imposing fines without warning” and “they used Alibaba as an example to deter other industry players from misconduct.”
On April 10, China’s General Administration of Market Regulation (GAMR) issued an administrative penalty against Alibaba for imposing a “two-for-one” monopoly, imposing a fine of 18.2 billion yuan and requiring it to fully rectify and submit a self-examination compliance report to GAMR for three consecutive years.
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