Strictest point of platform antitrust push
▶ Drive will put internet firms on path to new era of innovation
China’s antimonopoly push for online platforms reached the strictest phase and is making powerful waves through the industry, with 12 major platform firms including Baidu, JD. com, ByteDance and Pinduoduo publishing their law- abiding compliance operation commitments on Wednesday.
This came just one day after regulators ordered all platforms to conduct self- inspection and rectify there businesses within a month as part of an unprecedented overhaul of the platform economy.
Hailing the increasingly frequent antitrust push as an unparalleled effort to intensely benefit innovative start- ups, especially the fledging ones that would be easily nipped in the bud if breaches of market competition orders were to continue, industry participants reckon that the capital- centric approach to churning out internet titans that has underpinned the country’s explosive growth in the online arena will be redesigned.
But instead of signaling an end to the golden era for Chinese tech gurus, as some critics argued, the revamp will set China’s internet economy on the path to a truly innovationdriven future, the analysts said.
The first batch of 12 platform firms – including Baidu,
JD. com, Meituan, ByteDance and Pinduoduo – published their commitments to operate in compliance with laws, according to a statement from the State Administration for Market Regulation ( SAMR) on Wednesday.
Alibaba, which has been at the heart of the antitrust whirlwind and received a record $ 2.8 billion antimonopoly fine over the weekend, was not among the first batch of platform firms to make the announcements. Its fintech offshoot Ant Group was ordered to overhaul its businesses.
The commitments were made publicly available only one day after the regulators issued a one- month ultimatum to all platform firms to fix their breaches of market competition order.
China’s central bank also pledged to push for antimonopoly work in the payment sector on Wednesday, adding to the country’s antitrust ammunition.
Chinese artificial intelligence ( AI) start- up CloudWalk Technology holds a welcoming attitude toward the compliance push, a company spokesperson told the Global Times.
Along with an accelerated legislation process, the AI sector will gradually move into a healthy development trajectory with a greater focus on the use of normative technologies and products, which would benefit rule- abiding businesses, the spokesperson said.
Applauding the antitrust regulatory toughening as an imperative reform drive to rectify a capital- fueled deviation from what was supposed to be inclusive growth in the internet era, a seasoned industry veteran told the Global Times on Wednesday on condition of anonymity that fledging startups in particular would get a much- needed boost.
The veteran cited the moneyburning approach to fighting fast in the community groupbuying arena that has seen established platform giants set up “theaters of operations” to quickly drive out smaller rivals and assume leading positions.