China turns up heat on Internet giants with antitrust rules

Beijing is increasingly seeking to diminish the influence that a handful of its tech corporations wield over vast swathes of the economy. — Reuters

China on Nov 10 laid out detailed regulations for the first time to root out monopolistic practices in the Internet industry, as Beijing seeks to curtail the growing dominance of corporations like Alibaba Group Holding Ltd and Tencent Holdings Ltd.

The country’s antitrust watchdog is seeking feedback on a raft of regulations that establish a framework for curbing anti-competitive behaviour such as colluding on sharing sensitive consumer data, alliances that squeeze out smaller rivals and subsidising services at below cost to eliminate competitors. They may also require companies that operate a so-called Variable Interest Entity – a vehicle through which virtually every major Chinese Internet company attracts foreign investment and lists overseas – to apply for specific operating approval.