China wants to tighten competition rules on the internet

China’s market regulator this morning published a draft of new regulations to prevent unfair competition on the internet.

Tencent has just been “banned” from merging two game streaming platforms Huya and DouYu. Photo: AFP

According to CNBC, the draft regulations released this morning by the China Market Regulatory Authority (SAMR) cover a wide range of content, notably prohibiting companies from using data to quell reviews. fake product prices. The move marks Beijing’s next step in its efforts to strengthen control of the tech industry.

According to the draft regulation, carriers are not allowed to provide data wrong, such as the number of clicks on a piece of content; Do not hide negative reviews and only promote positive reviews. In addition, internet platforms are not allowed to use data, algorithms, and other technical means to influence user choices or other methods of controlling traffic (traffic hijacking). .

In addition, carriers in China will not be able to use data and algorithms to collect and analyze competitor transaction information.

China Market Administration says it can hire third-party organizations to check data if the carrier/app platform operator violates the above rules.

Currently, this agency is collecting public comments on the draft regulations until September 15. This draft represents China’s efforts to tighten antitrust and competition legislation. This early year, China Market Administration issued antitrust regulations for the so-called “background economy based on online platforms“.

Before, China Market Administration has also taken tough action against the country’s tech giants. In particular, Alibaba was fined $2.8 billion in April after the results of an antitrust investigation against this group. China Market Administration is also investigating food delivery platform Meituan for “suspicious proprietary activities”.

Last month, China Market Administration whistled Tencent’s plan to merge two streaming platforms online game Huya and DouYu due to concerns about monopoly issues.

In early July, Beijing announced that it would strengthen supervision of businesses that list overseas, just days after the ride-hailing super app Didi Global was successfully listed on the New York Stock Exchange and raised funds. 4 billion USD.

Accordingly, China will regulate security and cross-border data flows, crack down on illegal activities in the stock market, and punish fraudulent securities issuance and market manipulation. and insider trading.