09:40
Tightened regulations among key trends shaping China’s internet in 2021
Tightened regulations among key trends shaping China’s internet in 2021
That marked the first time the country’s market regulator attempted to define what constitutes anticompetitive practices among internet companies under the law. The announcement immediately resulted in about US$102 billion of market value erased from Tencent, Meituan and Alibaba, owner of the South China Morning Post.
DECEMBER 2020
SAMR flexed its muscles early this month, slapping fines of 500,000 yuan each on Alibaba, Tencent-backed China Literature and Shenzhen Hive Box for not properly reporting past acquisitions for clearance. E-commerce giant Alibaba’s case involved past equity investments in major Chinese mall operator Intime. Although these firms failed to seek regulatory clearance, the deals were not deemed to be “excluding or restricting market competition”, so a fine, rather than a break-up, was ordered, according to the regulator.
01:26
China kicks off antitrust probes into Alibaba over alleged monopolistic practices
China kicks off antitrust probes into Alibaba over alleged monopolistic practices
JANUARY 2021
Early this month, SAMR head Zhang Gong said the agency’s 2021 agenda was to tighten antitrust regulations, but did not single out any company by name in an interview with state-run media outlet Xinhua. SAMR will implement decisions from China’s leadership on “enhancing anti-monopoly [rules] and preventing the disorderly expansion of capital”, Zhang said.
The ruling Communist Party and the State Council on January 31 issued a long-term action plan, which would formulate and improve laws and regulations on “how to define whether a platform enterprise is a monopoly”, as well as on the “collection, use and management of user data” and “protection of consumer rights”.FEBRUARY
The following day, SAMR imposed a 3 million yuan fine on Vipshop for unfair competition. The market regulator said its investigation into Vipshop found that the firm ran an inspection system that obtained information about brands on its platform and others to gain a competitive advantage.MARCH
APRIL
Alibaba was fined a record 18.2 billion yuan by SAMR on April 10 for abusing “its dominant market position in China’s online retail platform service market since 2015”, as it forced merchants “to open stores or take part in promotions on its platforms”.The Hangzhou-based company was ordered to correct its misconduct, and pay a fine equivalent to 4 per cent of its total 2019 revenue. The fine was nearly three times the 6.1 billion yuan penalty paid by mobile chip supplier Qualcomm in 2015.Three days later, 34 of the country’s largest technology companies – including Alibaba, Tencent and Meituan – were hauled in for a meeting in Beijing with regulators SAMR, CAC and STA. The companies were lectured to “pay full heed to the warning of Alibaba’s case”, and conduct “self-inspections”. They were also required to publicly disclose their commitment to conduct business in compliance with laws.
MAY
SAMR was said to have started an investigation into suspected anticompetitive practices by KE Holdings, the country’s biggest housing broker whose top backer is Tencent, according to two people with knowledge of the matter. The investigation is the latest into China’s internet platform companies that match sellers and buyers, several of which have been accused by regulators of exploiting consumers.
10:19
China’s e-commerce and live-streaming booms are opportunities for private equity, Carlyle Group says
China’s e-commerce and live-streaming booms are opportunities for private equity, Carlyle Group says
JUNE
JULY
SAMR continued to dish out fines this month. On July 7, the market regulator slapped a total of 22 fines of half a million yuan each on some of the country’s Big Tech firms – including Alibaba, Tencent and Didi – for a series of irregularities related to merger deals over the past decade.In the first six months of the year, the market regulator, along with its local branches in cities and provinces, investigated more than 3,000 cases of fake reviews and inflated sales numbers, and imposed fines totalling 206 million yuan, according to a statement published on the agency’s website on July 22.
AUGUST
SEPTEMBER
OCTOBER
The draft of China’s 14th five-year plan for e-commerce was published on October 26 by the Ministry of Commerce, CAC and the National Development and Reform Commission. It forecast a slowdown in the country’s e-commerce growth rate, but expected the sector to remain a key lever to pursue “high-quality” growth in the next five years, especially in terms of narrowing the development gap between urban and rural areas.
NOVEMBER
Days before China marked the annual Singles’ Day shopping festival, the Guangdong Administration for Market Regulation accused 16 e-commerce platform operators of various irregularities including selling fake products, false advertising and poor after-sales service. The agency on November 5 issued a set of guidelines for the offending platforms, including requiring them to establish a compliance management system, handle consumer complaints in a timely manner, protect consumers’ personal information, and refrain from false or illegal advertising.The market regulator on November 20 slapped fines on several Big Tech firms, including Alibaba, Tencent and JD.com, for failing to declare 43 corporate deals. The companies were fined 500,000 yuan for each violation, with the oldest infraction dating back to 2012. Alibaba, for example, was fined for a violation involving its acquisition of a 44 per cent stake in food delivery platform Ele.me in 2018.ncG1vNJzZmivp6x7tK%2FMqWWcp51kwaavx2inqKSZmMZwrdGtoJyklWSAcoGVcGhyZ5Odtq%2Bt0macZpuforqmvsKeZJyqkZi4pbvWp2StoZ2auaq6xGaZnqGanruov4yamq2hn6PAbq7RoqWgZaSasKl5xqKYp6yj