China’s President Xi Jinping and officials are weighing on the idea of reigning on the “platform economy,” according to Reuters. Officials allege that some platforms are trying to monopolize the sector by becoming ‘slaves’ of capital.
Xi has warned of the risks of the ‘irregular’ development of some platforms which have abandoned their social responsibilities.
On Friday, China’s market regulator fined 12 companies, including Baidu Inc, Tencent, and Didi Chuxing, over 10 deals that violated anti-monopoly rules.
On Monday night, Alibaba’s UC Browser, which claims more than 400 million monthly active users, was shamed on state TV’s annual consumer rights over controversial advertisements.
Li Chengdong, a Beijing-based tech and e-commerce analyst called regulators to weigh in and protect millions of merchants’ interests on the growing platform economy.
China’s internet watchdog wants the companies to ‘conduct security assessments on their own” and flag new functions or services that “have the ability to mobilize society.”
The reign on the internet economy started last year as China shelved Ant Group’s $37 billion IPO.
