China tells its tech giants to heed 'warning' in Alibaba's record fine
April 13, 2021. Summarized by summa-bot.
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The A-list of China's tech industry was summoned before the country's powerful regulators on Tuesday for a dressing down over antitrust behavior, just days after Alibaba was hit with a record $2.8 billion fine for acting like a monopoly.
Hong Kong (CNN Business)The A-list of China's tech industry was summoned before the country's powerful regulators on Tuesday for a dressing down over antitrust behavior, just days after Alibaba (BABA) was hit with a record $2. 8 billion fine for acting like a monopoly.
The State Administration for Market Regulation (SAMR), along with the Cyberspace Administration (CAC) and the State Taxation Administration (STA), met with executives from 34 internet companies, such as Alibaba, Tencent (TCEHY) and ByteDance, the SAMR said in a statement.
The meeting was aimed at requiring every company to heed the warning from the Alibaba case and stop anti-competitive and other illegal behaviors, the regulator said.
On Saturday, the SAMR slapped a fine of 18. 28 billion yuan ($2. 8 billion) on Jack Ma's Alibaba, accusing the online shopping company of implementing "exclusive dealing agreements" that prevented merchants from selling on rival platforms.
Two days later, financial regulators ordered Ant Group, Ma's financial tech firm, to overhaul its operations and become a financial holding company supervised by the central bank.
Last month, Xi urged officials to step up their efforts to regulate online companies to maintain social stability.
The regulators required the companies to conduct their own inspections within a month, rectify any shortcomings, and make a public statement of compliance.
Officials will continue to track company behavior and any found guilty of breaching the rules will be subject to "heavy punishments," the SAMR said.