New rules in antitrust law in China

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A new week begins, so we reach the middle of February of this new year with news, and one of the things that is causing the most news is that China has implemented new rules with the aim of restrict the activities of the main technology companies in the countryThis refers to antitrust guidelines that could potentially benefit the bitten apple brand.

As in other countries around the world, China, the Asian giant has been working to introduce laws aimed at lessen the power of major tech companiesFor its part, the State Administration for Market Regulation (SAMR) put these new rules into effect on Sunday, as part of a technology giant offensive.

According to the Reuters portal, the rules were a formalization of a previous bill in November, which proposed guidelines that major Internet services must adhere toThe changes mentioned include preventing companies from forcing merchants to choose between supporting specific services and applications, as well as stopping actions that would set prices, thereby restricting technologies and other market manipulation techniques.

With these changes the rules are expected to affect the country’s tech giants, including Alibaba’s marketplaces on Taobao and Tmall, JD.com, and payment services like Tencent’s well-known Alipay and WeChat Pay.

According to SAMR, the guidelines “would stop monopolistic behaviors in the platform economy and protect fair competition in the market”, additionally, also had received more and more reports of antitrust behavior by online businesses.

The regulator also admitted that there were challenges in regulating the industry, because “the behavior is more hidden, the use of data, algorithms, platform rules, etc. it makes it more difficult to discover and determine what monopoly agreements are ”.

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New antitrust rules would benefit Apple in China

As such, SAMR has already launched an antitrust investigation, investigating Alibaba Group’s affairs in December following the suspended $ 37 billion IPO for payments affiliate Ant Group. Thus, Alibaba was warned by regulators against practices such as force merchants to enter into exclusive cooperation agreements, agreements that would prevent your use of a competitor’s platforms.