China stamps down on monopolistic tech giants with new Laws

China has recently implemented new anti-monopoly guidelines that target tech giants in the country.

The SAMR, or State Administration for Market Regulation has amended a few rules to curtail monopolistic behaviors of major companies.

Some of the most notable changes include preventive actions to manipulate the market, restrict technologies, fix prices and stopping companies from having their suppliers or partners choose specific apps and services. Companies such as Alipay, WeChat Pay, Tmall and Taobao will be hit when these rules take place.

SAMR has also begun to look into antitrust issues, such as the one with Alibaba Group where they forced merchants to agree with exclusive pacts and contracts to gain an edge over the competition.

Apple and other companies may benefit from these rule changes. For instance, WeChat Pay and Alipay are more commonly used than Apple Pay.

SAMR regulators say the challenge lies in industry regulation, since use of platform rules, data and algorithms make it more difficult to see where the monopoly lies.

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