According to the BBC’s report, the laws that China published in November 2020 in a draft form to prevent anti-competitive behavior by technology companies, entered into force today.
With this application, China aims to prevent e-commerce giants such as “Alibaba” and “JD.com” from abusing their dominant positions in the market.
The State Market Supervision and Regulation Administration (SAMR), affiliated with the State Council of China, aims to stop price fixing moves, predatory pricing and unreasonable trade practices with the enactment of new laws.
With the said regulation, it is expected to prevent manipulation of the market through the use of data and algorithms, and the application is expected to include financial technology companies such as Alibaba’s online payment subsidiary Ant Group and Tencet affiliated WeChat.
A MONEY PENALTY OF 500 THOUSAND DOLLARS TO VİPSHOP COMPANY
On the other hand, in the statement made by SAMR today, it was reported that within the scope of the new regulation, Vipshop company operating the e-commerce site “VIP.com” was fined approximately 500 thousand dollars on the grounds that it committed an unfair competition crime.
SAMR launched an antitrust investigation against the Alibaba Group in December 2020.