Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Exclusive: China's antitrust regulator bulking up as crackdown on behemoths widens

Exclusive: China's antitrust regulator bulking up as crackdown on behemoths widens

China’s competition watchdog is adding staff and other resources as it ramps up efforts to crack down on anti-competitive behaviour, especially among the country’s powerful companies, people with knowledge of the matter told Reuters.

Beijing’s plan to bulk up the State Administration for Market Regulation (SAMR) comes as China revamps its competition law with proposed amendments including a sharp increase in fines and expanded criteria for judging a company’s control of a market.

On Saturday, the watchdog slapped a record $2.75 billion fine on Alibaba after an antimonopoly probe found the e-commerce giant had abused its dominant market position for several years.

The fine underscores the challenges ahead for companies, including global firms with operations in China, mainly in a tech sector that thrived during years of relatively laissez-faire market regulation.

It also mirrors the increasing activism of U.S. and European antitrust authorities in recent years.

The Beijing-headquartered agency plans to expand its antitrust workforce by around 20 to 30 staff, up from about 40 now, two people with direct knowledge of the matter said.

The watchdog also plans to delegate case reviewing power to its local bureaux and source additional manpower from other government bodies and agencies to handle cases that require extensive investigation, four other people said.

Budgets allocated for antimonopoly investigations, daily operations and research projects will also be increased, said three of the people cited above and one more person with knowledge of the matter.

The people declined to be named as they were not authorised to speak to the media.

The SAMR did not immediately respond to Reuters request for comment.

“An increase in staffing as well as in the quality of the bureau’s law enforcement capabilities is a must for an antitrust push,” said Liu Xu, a researcher at the National Strategy Institute of Tsinghua University.

“Otherwise regulators won’t be able to handle multiple cases at one time, and the public will question how transparent the investigation process would be,” said Liu, a long-time advocate for antitrust enforcement.

GROWING SCRUTINY


The SAMR’s antitrust bureau was established in early 2018 after two other government departments were merged into it to form a single authority to police monopolistic activities.

The bureau has also been armed with new and more stringent laws in the past few months.

SAMR’s enhanced powers come as Chinese President Xi Jinping weighed in last month on the need to “strengthen antitrust powers” to rein in behemoths that play a dominant role in the country’s consumer sector.

“They didn’t feel they had the mandate to do it but now they do. And they are happy about that,” said a legal source close to SAMR, referring to the need to regulate the internet companies, which, he said, were seen as “a bit above the law.”

With growing scrutiny, executives of major internet firms are now required to make routine reports to the antitrust bureau for merger deals or of practices that could fall foul of antimonopoly rules, one of the sources said.

Reeling from the workload, the SAMR has started to expand its presence in more cities such as Hangzhou and Shenzhen on a trial basis, instead of handling the cases all in Beijing, to delegate case reviewing power to local bureaux, two of the sources said. It has also started outsourcing more research work, covering areas including economic and industry analysis, to scholars and its own consultancy committee to speed up cases in progress, one of the sources said.

For now, however, the investor focus is on who among the home-grown technology champions will be the next target of the Chinese antitrust watchdog.

“Other tech companies would be wise to assume they may be receiving the same level of scrutiny and penalty,” said Fred Hu, chairman of private equity firm Primavera Group, referring to the fine imposed on Alibaba.

“The heavy fine on one of the country’s dominant tech leaders also sends a strong message to the broader tech sector that the Chinese regulators, like their European counterparts, are serious about cracking down on Big Tech.”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
×