China’s highest court has demanded that further scrutiny is needed to crack down on monopolies and unfair competition.
The Supreme People’s Court has said that more work needs to be done to determine and verify whether a company engages in monopoly practices, regulate data collection and use, and protect the rights and interests of consumers in the digital sector. , according to a Chinese state report. -Classes People’s Daily.
The court also insisted on the need to guarantee entities access to equal resources and that a unified procedure is in place to promote fair competition, the outlet reported.
Supreme People’s Court request comes as China’s antitrust watchdog continues its investigation into tech giant Alibaba Group on alleged anti-competitive practices.
The State Administration of Market Regulation claims that Alibaba has been involved in monopolistic behavior such as “enforced exclusivity” by requiring e-commerce merchants to choose only one platform as their channel for trading. exclusive distribution, according to Morning Message from South China.
In a statement, Alibaba said it would “actively cooperate with regulators on the investigation,” adding that “the company’s business operations will remain normal.”
As the investigation continues, the Chinese government plans to nationalize the Alibaba group and the financial services arm of the Ant Group.
“Based on information received by the State Administration for Market Regulation in recent days, the administration will investigate Alibaba … for alleged monopoly activities,” International Business Times quoted the Chinese government.
Ant Group, the owner of Alipay, was also summoned by China’s central bank to meet with financial regulators to discuss the company’s regulatory compliance, the Morning Message from South China mentionned.
“Ant Group has received notice of a meeting from regulators. We will seriously investigate and strictly adhere to all regulatory requirements and make every effort to accomplish all related work,” Ant Group said. declaration.
The crackdown on Alibaba Group operations by Chinese regulators follows founder Jack Ma’s outspoken speech he delivered at the Bund summit in Shanghai in October, where he criticized the country’s dominant regulation and dominance of the State on the banking system.
“Good innovation can coexist with regulations, but not old-fashioned regulations. We cannot run an airport like we run a station, nor run the future like we run the past,” Ma said, according to a transcription.
He went on to say, “We need to eliminate the ‘pawnshop’ mentality in the financial industry today. We have to rely on the development of the credit system … I have found that the pawnshop mentality is a serious problem in China and has affected a lot of It becomes extremely serious when entrepreneurs have to pledge all their assets. They are under tremendous pressure and what they are doing is distorted. ”
On the first day of the Chinese People’s Police on Saturday, Chinese security chief Guo Shengkun called on agencies to become better acquainted with emerging technologies and businesses – such as live streaming, online lending and lending. ‘sharing economy – and promote legislation and rules to increase their ability to identify and control risks, and ensure that online platforms develop in accordance with laws and regulations, People’s Daily mentionned.
At the same time, Reuters reported that China plans to introduce new requirements that would see tech giants such as Ant Group, Tencent and JD.com share consumer credit data with regulators to avoid excessive borrowing and fraud.
The plan, if implemented, would see digital platforms deliver data to credit bureaus, which are managed or supported by the People’s Bank of China, before the shared data is distributed more widely to banks and other lenders to help properly assess borrowing risks.