China passed an amendment to the anti-monopoly law this Friday so that an environment of transparency and predictability for business operators can be practiced.
China has aimed to strengthen its supervision of the internet economy over the past few years, and the amendment for the same will come into action from August 1.
The country has cleared a revised anti-monopoly law that will undo all the faults in existing regulation in terms of abusing the market-dominant position, drawing a bottom line for private tech firms on "illicit acts that threaten fair market competition,".
Administrative penalties were issued in 98 cases after anti-monopoly probes, involving major internet firms including, Tencent, Alibaba, Meituan, and many others, by the authorities. The total fine imposed was 21.7 4 billion yuan.
The amended law will further regulate the overall platform economy with standardized rules, and major industry players can continue to grow based on the principle of high-quality development while expanding in accordance with the law, Liu Dingding, a Beijing-based veteran market analyst, was quoted as saying.
According to a Xinhua report, the amendment, adopted at the closing meeting of the standing committee session of the 13th National People's Congress, makes it clear that China will formulate and implement competition rules compatible with the socialist market economy and improve a unified, open, competitive and orderly market system.
The enforcement marks a new era in the normalization of China’s rule-based supervision over the platform economy, according to the Global Times.