China implements anti-monopoly law changes aimed at tech giants

Posted:
in General Discussion edited February 7
China has implemented new rules with the aim of restricting the activities of the country's major tech companies, anti-monopoly guidelines that could potentially benefit Apple.




Like other countries around the world, China has been working to introduce laws intended to curtail the power of major tech companies. The State Administration for Market Regulation (SAMR) brought those new rules in force on Sunday, as part of a tech giant crackdown.

The rules were a formalization of a previous draft law from November, reports Reuters, which proposed guidelines that major internet services must adhere to. These changes include preventing firms from forcing merchants to choose between supporting specific services and apps, as well as stopping actions that would fix prices, restrict technologies, and other market manipulation techniques.

The rules are expected to affect the country's tech giants, including Alibaba's Taobao and Tmall markets, JD.com, and payment services including Alipay and Tencent's WeChat Pay.

The guidelines would "stop monopolistic behaviors in the platform economy and protect fair competition in the market," said SAMR. It had also received increasing reports of anti-monopoly behavior by online firms.

The regulator also admitted there were challenges in regulating the industry, as "the behavior is more concealed, the use of data, algorithms, platform rules, and so on make it more difficult to discover and determine what are monopoly agreements."

SAMR has already launched one antitrust investigation, looking into the affairs of Alibaba Group in December following the suspended $37 billion IPO for payment affiliate Ant Group. At the time, Alibaba was warned by regulators against practices such as forcing merchants into exclusive cooperation pacts, agreements that would prevent their use of a competitor's platforms.

While Apple is a major company, even in China, it is nowhere near the scale of the bigger tech firms in the region. For example, services like Alipay and WeChat Pay are more commonly used than Apple Pay.

In theory, the rules will likely help Apple improve its standing in the territory, rather than being the target of said rules.

Elsewhere in the world, Apple is put alongside Google, Facebook, and Amazon as the big four tech firms targeted by lawmakers to be hit by similar law changes.

In the United States, bills were proposed in February to give the government greater power to prevent mergers and potentially penalize companies for antitrust practices, at up to 30% of the income generated from the actions.

Investigations by the government led to recommendations for sweeping changes in antitrust law, to minimize their marketplace dominance across multiple industries. Apple has also been singled out as enjoying monopoly power with the App Store.

The European Union is also introducing legislation that will also regulate the tech giants more strictly, again with the threat of heavy fines for noncompliance.

Comments

  • Reply 1 of 13
    How interesting.  China is becoming more like the US while the US is becoming more like China.
    sricechadbag
  • Reply 2 of 13
    sflocalsflocal Posts: 5,728member
    jcallows said:
    How interesting.  China is becoming more like the US while the US is becoming more like China.
    *rolls eyes*
    EsquireCatsdewmelkruppStrangeDayswatto_cobra
  • Reply 3 of 13
    jcallows said:
    How interesting.  China is becoming more like the US while the US is becoming more like China.

    exchange roles
  • Reply 4 of 13
    mac_dogmac_dog Posts: 909member
    jcallows said:
    How interesting.  China is becoming more like the US while the US is becoming more like China.

    How interesting...

    in what way do you see the US becoming more like China? Please be specific and site your sources if there are any. Asking for a friend. 
    EsquireCatswatto_cobra
  • Reply 5 of 13
    How about Duopolies? 
  • Reply 6 of 13
    Enforcing copyright is a good way to reduce monopolies... just saying. 
    edited February 8 watto_cobra
  • Reply 7 of 13
    GeorgeBMacGeorgeBMac Posts: 10,262member
    jcallows said:
    How interesting.  China is becoming more like the US while the US is becoming more like China.

    Yes, China is in a similar stage of development as the U.S. was about 100 years ago -- dominated by large, entrepreneur driven corporations who both provide enormous good to the nation as well as enormous harm.   The U.S. responded with labor and anti-trust laws to rein them in and it has helped to block the worst abuses while simultaneously hobbling their future growth.   China is beginning a similar process.
    watto_cobra
  • Reply 8 of 13
    crowleycrowley Posts: 8,720member
    mac_dog said:
    jcallows said:
    How interesting.  China is becoming more like the US while the US is becoming more like China.
    How interesting...

    in what way do you see the US becoming more like China? Please be specific and site your sources if there are any. Asking for a friend. 
    I suspect his intention is just to be humorously glib. And it’s “cite” btw.
  • Reply 9 of 13
    lkrupplkrupp Posts: 9,454member
    mac_dog said:
    jcallows said:
    How interesting.  China is becoming more like the US while the US is becoming more like China.

    How interesting...

    in what way do you see the US becoming more like China? Please be specific and site your sources if there are any. Asking for a friend. 
    Well, that’s the problem with anonymous posts on social media. You can say anything you want to without having to back it up. And you can present rumor as confirmed fact. It’s all about expressing internal anger and frustration... like me.
    watto_cobra
  • Reply 10 of 13
    GeorgeBMacGeorgeBMac Posts: 10,262member
    lkrupp said:
    mac_dog said:
    jcallows said:
    How interesting.  China is becoming more like the US while the US is becoming more like China.

    How interesting...

    in what way do you see the US becoming more like China? Please be specific and site your sources if there are any. Asking for a friend. 
    Well, that’s the problem with anonymous posts on social media. You can say anything you want to without having to back it up. And you can present rumor as confirmed fact. It’s all about expressing internal anger and frustration... like me.

    Unfortunately it's not just random posters taking advantage of those abilities.
  • Reply 11 of 13
    StrangeDaysStrangeDays Posts: 11,566member
    jcallows said:
    How interesting.  China is becoming more like the US while the US is becoming more like China.
    Yeah lemme know when the US starts mass kidnappings, imprisonments, forced organ harvesting, and the murder of dissidents, political opposition and ethnic minorities.
    watto_cobra
  • Reply 12 of 13
    entropysentropys Posts: 3,106member
    mac_dog said:
    jcallows said:
    How interesting.  China is becoming more like the US while the US is becoming more like China.

    How interesting...

    in what way do you see the US becoming more like China? Please be specific and site your sources if there are any. Asking for a friend. 
    Perhaps you should report him to teh authoritehs.  You know you want to.
    watto_cobra
  • Reply 13 of 13
    GeorgeBMacGeorgeBMac Posts: 10,262member
    jcallows said:
    How interesting.  China is becoming more like the US while the US is becoming more like China.
    Yeah lemme know when the US starts mass kidnappings, imprisonments, forced organ harvesting, and the murder of dissidents, political opposition and ethnic minorities.

    Any actual evidence for that?   Or just the usual "repeat until true"?
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