Beijing asserts more control over internet companies with new anti-monopoly rules
HONG KONG — China’s regulators for the first time have issued a draft of detailed guidelines to combat anti-competitive practices of big technology companies. In a 22-page document released last week, the State Administration for Market Regulation stated that some tactics deployed by internet companies to gain users could be outlawed when the proposed rules take effect.
The introduction of the guidelines comes on the heels of the abrupt suspension of Ant Group’s mega initial public offering, as authorities tighten rules for fintech companies. Alibaba Group Holding, which stands to be affected by the new guidelines, owns one-third of Ant. The development also triggered one of the tech sector’s biggest sell-offs this year, as investors rushed to secure gains ahead of the potential blow from new regulations.
As investors and online customers scramble to evaluate the cost of the new rules on China’s booming internet economy, here have five things to know about the government’s anti-monopoly guidelines: