(Reuters) Beijing hit tech giants on Monday with a fresh regulatory move that requires them to stop blocking each other’s links on their platforms.
China’s Ministry of Industry and Information Technology issued the statement in the wake of a major regulatory crackdown, which has seen big companies lose billions in market value.
Zhao Zhinguo, an MIIT spokesperson, said that internet link restrictions affected the rights of users and the market order.
Tencent Holdings and Alibaba stated that they will comply with the new directive and that they will work to find common grounds with the other platforms.
Alibaba’s marketplaces like Taobao and Tmall e-commerce currently restrict Tencent’s payment services on its platforms.
Stocks of Alibaba Group dropped by 6% while that of Tencent Holdings fell by 3% on Monday.
9988: HKG is down -4.23%, 0700: HKG is down -2.45%, Hang Seng Index is down -1.50%.
