China’s market regulator sent out draft rules on Tuesday aimed at ending unfair competition on the internet, according to a report by CNBC on Tuesday.
- The rules released by the State Administration for Market Regulation (SAMR) cover a wide range of areas from prohibitions on the way companies can utilize data to remove fake product reviews.
- Chinese listed technology stocks in Hong Kong dropped sharply on the crackdown’s news. Chinese gaming giant Tencent was 3.5% lower in morning trade, while Alibaba dropped by 2.5%.
- SAMR’s rules continue the Chinese government’s regulatory assault on China’s technology giants. Other major rules include banning operators from providing false data.
- Internet platforms will not be allowed to use data, algorithms, and other technical approaches to influence user choices or other approaches to perform traffic hijacking.
SAMR also emphasized operators should not use data and algorithms to gather and analyze the trading information of competitors. The regulator could hire third-party institutions to audit data when an operator fails to comply with the rules. HSI down -1.66%, CNY USD down -0.10%