Alibaba, Tencent shares tumble as Chinese SAMR unveils new antitrust rules
Rules announced on Tuesday would ban traders from falsifying statistics or information about their product orders, sales and user reviews to mislead customers. They would also be prohibited from fabricating consumer opinions to damage the reputation of their rivals.
Other targeted practices include the use of data, algorithms, or other means to redirect their competitors’ web traffic or create barriers that would prevent customers from installing or running competitive services.
Companies that “seriously” break the rules would be forced to publicly apologize and commit to resolving their issues, in addition to regulators’ decision to sanctions, SAMR added.
The government spoke of the need to safeguard national security and protect the interests of its people. Regulators have largely blamed the private sector for creating socio-economic problems that could potentially destabilize society and affect the ruling Chinese Communist Party’s grip on power.