With fines, regulatory orders and compelled restructurings. In late July China ordered greater than two dozen tech corporations to hold out inner inspections and tackle points reminiscent of knowledge safety. Earlier, Ant, which was about to go public earlier than being stopped by regulators in November 2020, agreed to show itself right into a monetary holding firm, making it topic to capital necessities just like these for banks. Regulators levied a document $2.8 billion high quality in opposition to Alibaba for alleged monopolistic conduct and ordered it to vary its enterprise practices. Didi needed to take away its fundamental app and dozens of others from smartphone shops because it faces the prospect of unprecedented penalties. Tencent, operator of the WeChat super-app, has been ordered to surrender unique music streaming rights whereas Meituan and Pinduoduo Inc. have additionally fallen foul of regulators. The tutoring sector, the place corporations reminiscent of TAL Training Group garnered multibillion-dollar valuations, noticed its future redefined in a single sweeping order that banned them from making earnings and elevating capital and likewise restricted what they’ll train. The velocity of change has been dizzying with guidelines to curb monopolistic practices drafted and finalized in simply three months.
https://www.washingtonpost.com/enterprise/why-china-is-cracking-down-on-its-technology-giants-quicktake/2021/08/02/9d2e8392-f347-11eb-a636-18cac59a98dc_story.html?utm_source=rss&utm_medium=referral&utm_campaign=wp_business | Why China Is Cracking Down on Its Know-how Giants: QuickTake