New rules in antitrust law in China

A new week begins, so we reach the middle of February of this new year with news, and one of the things that is causing the most news is that China has implemented new rules with the aim of restrict the activities of the main technology companies in the countryThis refers to antitrust guidelines that could potentially benefit the bitten apple brand.

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In the same way as in other countries around the world, China, the Asian giant has been working to introduce laws aimed at lessen the power of major tech companiesFor its part, the State Administration for Market Regulation (SAMR) put these new rules into effect on Sunday, as part of a technology giant offensive.

According to the Reuters portal, the rules were a formalization of a previous bill in November, which proposed guidelines that major Internet services must adhere toThe changes mentioned include preventing companies from forcing merchants to choose between supporting specific services and applications, as well as stopping actions that would set prices, thereby restricting technologies and other market manipulation techniques.

With these changes the rules are expected to affect the country’s tech giants, including Alibaba’s marketplaces on Taobao and Tmall, JD.com, and payment services like Tencent’s well-known Alipay and WeChat Pay.

According to SAMR, the guidelines would “stop monopolistic behaviors in the platform economy and protect fair competition in the market”, additionally, also had received more and more reports of antitrust behavior by online businesses.

The regulator also admitted that there were challenges in regulating the industry, because “the behavior is more hidden, the use of data, algorithms, platform rules, etc. it makes it more difficult to discover and determine what monopoly agreements are ”.

New antitrust rules would benefit Apple in China

As such, SAMR has already launched an antitrust investigation, investigating Alibaba Group’s affairs in December following the suspended $ 37 billion IPO for payments affiliate Ant Group. Thus, Alibaba was warned by regulators against practices such as force merchants to enter into exclusive cooperation agreements, agreements that would prevent your use of a competitor’s platforms.

iphone5_china

For its part, while Apple is an important company, even in China, it is not part of the scale of the largest technology companies in the region, for example, services such as Alipay and WeChat Pay. are more commonly used than Apple Pay. In this way, theoretically, the rules are likely to serve as an impetus for Apple to improve its position in the territory, rather than being affected by those rules.

On the other side of the planet, the brand of the bitten apple is put together with Google, Facebook and Amazon are put as the four big technology firms legislators objective to be hit by similar law changes.

Justice Department vs. Google Monopoly
Justice Department vs. Google Monopoly

Thus, in the United States, bills were proposed in February to give the government greater power to prevent mergers and potentially penalize companies for antitrust practices, with up to 30% of the income generated by the actions, something similar to what happened with Microsoft in its time.

Due to all the irregularities detected, government investigations led to recommendations for radical changes in the antitrust law, in order to minimize market dominance held by multiple industries. This is how Apple has also been identified as benefiting from monopoly power with the App Store.

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For its part, the European Union is also introducing new legislation that also regulate the tech giants more strictly, so it again reveals the threat of heavy fines for non-compliance.