Anti-monopoly law should help regulate platform economy: expert

China officially launches an anti-monopoly office in Beijing on Thursday. Photo:Li Hao/GT

The revised anti-monopoly law, which aims to build and create a fair market competition ecosystem compatible with China’s socialist market economy, will come into force on Monday, which experts say marks an important step forward. as the country seeks to gradually introduce a healthier and more sustainable digital. economy.

While the old version of the anti-monopoly law, in force since 2007, had played a supporting role in the rapid development of China’s digital economy, it was based on the traditional anti-monopoly concept and is not suitable for the new market is changing, experts said, explaining why the new anti-monopoly law is needed.

The new amended anti-monopoly law, which was passed at the 35th meeting of the Standing Committee of the 13th National People’s Congress (NPC) on June 24, sets new guidelines for industry players, and the law will help authorities to unify their anti-monopoly enforcement. measures as part of the nation’s efforts to establish an open, competitive and orderly market mechanism for sustainable development.

The legislation should give more weight to regulating the development of the internet platform economy, analysts said.

In recent years, a few platform conglomerates such as e-commerce giant Alibaba have been fined by regulators for committing monopolistic acts, veteran market analyst Liu Dingding told the Global Times on Sunday. based in Beijing.

The draft amendment clarified the applications of the relevant rules targeting the platform economy, stipulating that platform operators should not take advantage of their data, algorithm, technology, capital advantage and own platform rules to engage in monopolistic practices, Yang Heqing, spokesperson for the NPC Standing Committee Parliament Affairs Committee, said on June 16.

With the implementation of the revised law, companies in the Internet industry are expected to develop in a balanced and uniform manner, rather than forming new market monopolies, Liu said.

The largest sanction involving violation of the anti-monopoly law is the 18.228 billion yuan fine imposed by the State Administration for Market Regulation on Alibaba Group in April 2021. The company was legally required to carry out rectifications, including maintaining fairer competition in the marketplace and protecting the legitimate rights and interests of all merchants and consumers on the platform.

However, Liu said that there may be fewer anti-monopoly cases of such magnitude in the future, especially after the new anti-monopoly law comes into effect, as the government puts more emphasis on the regulation of market irregularities.

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