China on Sunday unveiled the official version of the rules aimed at eliminating monopolistic practices in the Internet industry, after first seeking feedback on the draft guidelines last November.
the rules will take effect immediately, according to a statement from the State Administration for Market Regulation, the nation’s antitrust oversight body.
The regulations will limit anti-competitive behavior, such as sharing sensitive consumer data, forming alliances that squeeze smaller rivals, and subsidizing cost-effective services to eliminate competitors, the regulator said.
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The Chinese Politburo, the main decision-making body of the Communist Party, has promised in a meeting at the end of last year to strengthen antitrust efforts in 2021. Less than two weeks after the meeting, China investigation into Alibaba Group Holding Ltd. for alleged monopolistic practices.
Competition lawsuits have been filed by companies even as regulators step up control. ByteDance Ltd. has attempted a lawsuit last week against Tencent Holdings Ltd. on the alleged monopolies in its WeChat and QQ platforms, escalating a dispute between two Chinese social media giants. A Beijing court has agreed to hear the case, a ByteDance official confirmed on Sunday.
– With the assistance of Jessica Sui, Zheping Huang and Coco Liu