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Net firms, govt push antitrust rules

By He Wei | China Daily | Updated: 2021-03-10 08:59
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Priority tasks

In December, the Central Economic Work Conference said that anti-monopoly measures are among eight priority tasks for economic development this year, and the emphasis will be on the prevention of the "disorderly expansion of capital".

The People's Daily commentary said, "Anti-monopolism is an international practice, which is conducive to protecting fair competition and innovation in the market and safeguarding consumer rights."

The commentary said the investigation does not imply a change of attitude toward encouraging and supporting the online economy.

"Rather, it's precisely for the purpose of better regulating and developing the online economy, and guiding and promoting its healthy development in the hope that it stands to make a bigger contribution to China's high-quality economic development," it said.

Xue Jun, a professor of law at Peking University and director of the school's E-Commerce Law Research Center, said the overriding aim of anti-monopolism is not about "clamping down on one internet giant and fostering the other", but rather safeguarding the interests of small and medium-sized businesses that rely on these internet platforms.

"Through a series of actions, we really need to hear the voices of smaller merchants, who form the backbone of the stability of the economy and livelihoods," Xue said.

Regulators have also curbed companies' potentially monopolistic behavior by regulating online financial services to rein in any risks.

In January, digital lenders including Ant Financial's Huabei and Tencent's WeBank announced a reduction of their maximum quota for loans extended via online channels after heavier scrutiny from financial regulators and new provisions.

"By and large, Chinese regulators are pro-innovation," said Chen Guoli, a professor of strategy at the INSEAD business school in Singapore.

"But the government is also striking a delicate balance between innovation and risk. When it comes to the financial system, it is extremely careful about systemic risk."

The People's Daily piece said that investigations, such as those recently implemented, or strengthened supervision do not imply a change of attitude toward encouraging and supporting the online economy.

Xinhua News Agency quoted Ma Chao, an independent financial technology expert, as saying that, in a sense, restrictions on technology giants such as Microsoft and IBM through antitrust measures in Europe and the United States prompted the birth and growth of internet startups such as Google, Apple, Facebook and Amazon.

"It is market competition that inspires internet companies to constantly push for innovation in technologies and business models," Ma said.

"The players can only achieve sustainable development by strengthening self-regulation and embracing the original spirit of innovation."

Wu Miaomiao in Shanghai contributed to this story.

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