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Friday, February 19, 2021

China to Launch New Regulations to Curb Power of Tech Giants

China’s market regulator proposed new regulations to curb the monopolistic power of large internet companies and avoid abusive behavior in competition.

China’s market regulator proposed new regulations to curb the monopolistic power of large internet companies and avoid abusive behavior in competition.

The State Administration for Market Regulation (SAMR) submitted a 22-page draft of antitrust regulation which marks its first attempt to define anti-competitive behavior in the internet industry.

The regulator’s move aims to stop corporations and small companies from sharing sensitive consumer data, teaming up to overpower smaller rivals, as well as selling services and products to hinder competition.

This move follows the controversial suspension of the record $35 billion initial public offering of Ant Group.

The market regulator’s major step also made the stocks of big corporations, such as Alibaba Group Holding and Tencent Holdings, to drop significantly.

“It signals the end of an era — it will fundamentally change the competition landscape in China for internet companies,” said Zhonglun Law Firm’s antitrust expert Scott Yu.

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