China Ramps Antitrust Scrutiny On National Internet Firms: WSJ

21-Jun-2021 Intellasia | Benzinga | 5:02 AM Print This Post

Chinese government agents, including the antitrust watchdog, the cyber police, and tax authorities paid surprise visits to multiple domestic internet companies, including Didi Chuxing Technology Co, to check on possible antitrust violations, the Wall Street Journal reported.

The agencies, including the State Administration for Market Regulation, the Cyberspace Administration of China, and the State Tax Administration agents, have grilled senior executives, downloaded contracts, financial records, and collected emails, internal communications.

These actions are a part of a regulatory review that followed submissions of self-examinations by 34 technology companies summoned in April.

The antitrust watchdog held another meeting with provincial-level regulators and asked them to follow up on the investigations in May.

The 34 companies included short-video app operator Bytedance Ltd, food-delivery firm Meituan (OTC: MPNGF) (OTC: MPNGY), and social media company Tencent Holdings Ltd (OTC: TCEHY).

The State Administration for Market Regulation senior official harped the importance of antimonopoly law enforcement for ensuring fair competition.

In 2020, the Chinese government canceled financial-technology firm Ant Group Co.’s initial public offering days after its controlling shareholder, Jack Ma’s speech enraged government leaders and regulators.

Last week, Didi’s IPO prospectus disclosed the completion of the regulator-mandated self-inspection and regulators’ on-site inspections.

China’s anti-competitive practice crackdown on influential internet firms began in late 2020. In April, China penalised Alibaba Group Holding Ltd (NYSE: BABA) by $2.8 billion following an antitrust probe. Recently, the crackdown has broadened to data privacy violations as well.

Price action: BABA shares closed higher by 0.29 percent at $212.30 on Friday.

https://finance.yahoo.com/news/china-ramps-antitrust-scrutiny-national-203250489.html

 

Category: China

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