The comments, made in a news briefing by the Ministry of Industry and Information Technology (MIIT), are the latest step in Beijing’s comprehensive regulatory crackdown that has dragged on sectors ranging from technology to education and property and wiped out billions of dollars from market value. One of the largest companies in the country.
China’s Internet is dominated by a handful of technology giants who have historically blocked links and services from competitors on their platforms.
Restricting general access to Internet links without a valid reason “affects the user experience, harms user rights and disrupts market order,” said Zhao Ziguo, a spokesman for MIIT.
He said, “Currently we are guiding the concerned companies to introspect and improve.
He did not specify what the consequences would be for companies that failed to comply with the new guidelines.
Outbreaks appear to be exacerbated by the e-commerce platform, but Flipkart seems to be thriving based on its latest figures, which we only report on today.
MIIT did not name any companies, but the 21st Century Business Herald newspaper reported on Saturday that Alibaba Group Holdings Limited and Tencent Holdings Limited had asked to close the practice until an unspecified time last week. Shares in Alibaba Group and Tencent Holdings fell 6% and 3%, respectively, on Monday, while the Hang Seng Tech Index fell 3%.
The practice targeted by MIIT is common.
Tencent prevents users from sharing content from Tencent’s instant messaging apps WeChat and DouQin, a short video app owned by ByteDance on QQ. In February, Dwayne filed a lawsuit in a Beijing court alleging monopolistic behavior. Tencent has called the allegations baseless.
In other cases, Alibaba’s Taobao and Tamal e-commerce marketplace Tencent’s payment services do not allow WeChat Pay to be used as a payment option.
Tencent said it supports MIIT’s guidance and will make the necessary changes in phases. Alibaba said it would comply with MIIT requirements and was “looking forward to finding common ground with other platforms.”
Bite Dance “calls for action on all Internet platforms, do not make excuses, clarify schedules and actively implement them to provide users with a safe, reliable and convenient network,” the statement said.
Michael Norris, research and policy manager at Shanghai-based consultancy agency China, said: “China has the potential to rewrite the digital advertising and e-commerce landscape by forcibly merging into China’s wall gardens.”
“In the short term, everyone’s eyes will be on Tencent as they realize what it means to open WeChat for Alibaba and Bite Dance,” he said.
MIIT also said on Monday that China has “too many” electric vehicle (EV) manufacturers and that the government would promote consolidation.