Beijing lectures Alibaba, Tencent, Meituan and Pinduoduo in new antitrust warning to Big Tech
- China’s market regulator told six of the country’s internet giants that it is concerned about problems of pricing and competition in community group buying services
- Regulators are becoming more aggressive in managing risks stemming from Big Tech after learning from experiences in ride hailing and bike sharing
China’s market regulator has summoned Alibaba Group Holding, JD.com, Tencent Holdings, Meituan, Pinduoduo, and Didi Chuxing for a meeting and imposed nine “must nots” on their community group buying services in Beijing’s latest move to tighten its control over Big Tech companies.
The State Administration for Market Regulation (SAMR) said in a statement that it had conducted an “administrative guidance meeting” on Tuesday with the six e-commerce companies, warning them to strictly toe Beijing’s line and to pay attention to problems of “low price dumping and squeezing jobs”.
The regulatory warning comes at a time when Beijing is undergoing a holistic review of the role of Big Tech in China’s economy and society after the Politburo concluded at a key meeting that China must break up monopolies and prevent the “disorderly expansion of capital”.
Community group buying is a cost-saving business model that enables residents in one community to purchase groceries and daily essentials in bulk via a community leader. It is gaining popularity in China with Big Tech platforms and among start-ups such as Xingsheng Preference and Nice Tuan, which have flocked to introduce the new service.
The new internet-enabled shopping service also fanned concerns that it may disrupt China’s traditional retail network and throw small shop owners and vendors out of jobs.
China’s market regulator told the internet giants that it was concerned about problems of pricing and competition, according to the statement.