Highlights –

  • China’s SAMR warns companies against using business malpractices.
  • SAMR recently had fined Alibaba Group $2.75 billion.
  • China in February had issued a new anti-monopoly guideline targeting internet platforms.
  • SAMR is also said to have criticised abusive practices in community group buying.

China’s State Administration for Market Regulation (SAMR) on Tuesday warned nearly three dozen internet companies to stop using any banned practices such as forcing vendors to use their platform exclusively.

The market regulator had recently fined e-commerce giant Alibaba $2.75 billion last week.

According to reports, SAMR mentioned that it had summoned 34 companies including Tencent, ByteDance, Baidu and food delivery platform Meituan for a meeting, where it ordered them to conduct self-inspections within one month, and warning of “severe punishment” for any that still violated the rules.

China in February had issued new anti-monopoly guidelines targeting internet platforms.

According to a statement issued by SAMR, it described the overall development of China’s platform economy as improving. However, it also said that the same should be wasted in correcting the way companies operate to ensure they comply with the law.

SAMR further criticised abusive practices in community group buying, when companies offer aggressively low prices to woo users, and warned against abuse of big data and tax-related violations.

The regulator in particular also warned against the practice of forcing vendors to operate on only one platform, a tactic known as “choose one from two”.

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