After Alibaba probe, antitrust is at the top of 2021 agenda, China’s top market regulator says
- The head of China’s State Administration for Market Regulation said enhancing anti-monopoly rules remains a top priority in 2021
- China started an antitrust crackdown at the end of 2020, with a probe into Alibaba potentially having big implications for other digital platforms
Tightening antitrust regulations leads the 2021 agenda for China’s top regulator, the head of the agency said, sending a signal that Beijing’s crackdown on Big Tech’s outsized market power is likely to deepen and widen following the launch of an antitrust probe into Alibaba Group Holding.
The State Administration for Market Regulation (SAMR), which is in charge of antitrust investigations, started its drive to enhance oversight of monopolies and unfair competition in 2020 to send a “strong message” that “no one can be outside anti-monopoly or unfair competition regulations, whether they are online or offline businesses”, Zhang Gong, the head of the agency, told state-run media outlet Xinhua in an interview published on Saturday.
The agency’s priority for 2021 and beyond, Zhang said, is to implement decisions from China’s leadership on “enhancing anti-monopoly [rules] and preventing the disorderly expansion of capital”.
Zhang did not single out any companies by name in the interview.
The remarks come after SAMR announced an antitrust probe into Alibaba in a one-line statement issued on Christmas Eve, saying the agency is looking into the company’s alleged monopolistic business practices, including “picking one from the two”, which refers to forcing online merchants to choose one platform as their exclusive sales channel.
Alibaba is the parent company of the South China Morning Post.