If handing over to the son can make Alibaba develop better, of course it will be handed over to the son. But if Jack Ma handed over Alibaba to Zhang Yong, so that Alibaba could develop better, then Jack Ma would of course choose Zhang Yong.

When Jack Ma founded Alibaba, he also hoped that Alibaba could live to be 102 years old. In this case, Jack Ma would obviously choose the most suitable person to manage Alibaba. Zhang Yong started with Taobao Mall and then founded Double Eleven. It can be said that he has made great contributions to the development of Alibaba, and has a relatively deep affection for Alibaba. In all aspects, Zhang Yong may be a better successor.

And Jack Ma’s son, of course, is also very good. However, I may have been in school for so many years, may not have enough work experience, and the qualifications and abilities may not necessarily take on the important tasks of Alibaba, a large enterprise at once, and Jack Ma’s son’s ambition may not be to take over Alibaba. , Ma Yun now chose Zhang Yong to take over Alibaba instead of his son.

And there is another point. Now Jack Ma holds about 6% of Alibaba’s equity. Although Jack Ma has a strong voice, if he wants his son to take over, he may also need to come up with an answer that can satisfy shareholders. In other words, if Jack Ma’s son does not have sufficient qualifications and experience, as well as relatively prominent achievements, then the major shareholders may not be very happy.

To sum up, Jack Ma chose Zhang Yong instead of his son to take over Ali. This is also a very smart choice. One is that his son may not have enough seniority and may not have made great achievements, and Zhang Yong has set up for the development of Alibaba. After all the contributions, Zhang Yong is obviously more suitable.

A poem by a poet of the Tang Dynasty, about the phenomenon of burning books in the Qin Dynasty. “What CEO Wang posted is an anti-government poem. It shows that he is under a lot of pressure because of the investigations,” said Hao Hong, an analyst at Bocom International in Hong Kong. CEO Wang deleted the post on May 9 and denied the above rumor. He claimed to only use the verse to refer to the company’s competitors. A spokesperson for Meituan made a similar comment. Mr. Wang Xing, CEO of Meituan. Photo: China Daily. In October 2020, billionaire Jack Ma publicly criticized the Chinese banking system. As a result, Jack Ma’s startup Ant Group was forced to stop its $35 billion listing, Alibaba was investigated and fined $2.8 billion for violating antitrust laws. “Many people think that the poem posted by Wang Xing is a criticism similar to what Jack Ma said. This is not the time for Chinese businessmen to raise their voices.” Bloomberg quoted Kerry Goh, Investment Director of Kamet Capital Partners as saying. In recent years, the Chinese government has tightened supervision of technology companies. The Hang Seng Technology Index is down a record 30% from its peak in February. Meituan is also the subject of investigation by Chinese authorities for monopolistic behavior. Meituan is accused of forcing merchants to sign exclusive business contracts on its platform. On May 10, the Shanghai Consumer Council criticized Meituan for infringing on the rights of consumers.

Huang Zheng, founder of Pinduoduo (left) and Wang Xing, founder of Meituan – Photo: Bloomberg/Getty Images. Huang Zheng, founder and CEO of e-commerce firm Pinduoduo, and Wang Xing, founder and CEO of food delivery platform Meituan, have seen their fortunes plummet after being criticized by an activist group for consumers. According to Forbes, the share price of this Pinduoduo 11/5 fell more than 9%, “blowing” $ 4.3 billion from Huang Zheng’s assets. The founder of Pinduoduo is currently worth $42.9 billion according to Forbes’ real-time statistics, making him the 4th richest person in China. Meanwhile, Wang Xing’s fortune fell by $2.5 billion as investors continued to sell off Meituan shares in the May 11 session. The share price fell another 5.3% after falling 7.1% in the previous session. Wang is currently worth $19.5 billion. A day earlier, the Shanghai Consumer Council said it had convened both Pinduoduo and Meituan. The organization criticized Pinduoduo for its poor quality goods, rampant counterfeiting on the company’s e-commerce platform, and poor after-sales service. The organization also condemned Meituan for issues with refunds, failed food deliveries and misleading content on the company’s platform. The statement of the Shanghai Consumer Council comes as the Chinese government is tightening control of the country’s largest technology firms. Last week, Wang was also criticized after posting a poem of a Tang poem allegedly intended to criticize the Chinese government on the social network Fanfou. The poem titled The Book of the Dead (Book Burning Pit) by poet Zhang Jie, written at the end of the Tang Dynasty, condemns Qin Shi Huang’s act of burning books to control people’s thoughts and suppress the mind. awake. The poem is meant to mock Qin Shi Huang for seeing academia as the greatest threat, but his reign was eventually overthrown by non-intellectuals. A few days later, Wang deleted the post, explaining that the poem was just a reminder that “the most dangerous enemies are often the ones we least expect”. The 42-year-old CEO also added that Meituan’s biggest rival appears to be Ele.me but is in fact “unnoticed companies and business models that are disrupting the food delivery industry”. Late last month, Beijing’s anti-trust authority officially launched an investigation into Meituan’s alleged request for sellers to be allowed only the Meituan platform or another competitor. Since then, the company’s stock price has fallen by nearly 18 percent. On Weibo, many Chinese netizens compared Wang’s posting of the poem to Jack Ma’s speech criticizing the financial management system in October 2020. The co-founder of Alibaba at the time even said bluntly that Chinese banks operate like “pawn shops”. Jack Ma’s speech is said to spark a series of strong moves by Chinese authorities against Alibaba as well as its subsidiary Ant Group. Ant’s “big” IPO was suspended a few days later. And Alibaba was fined a record $2.8 billion for monopolies last month.

According to the Bloomberg Chinese tech giants like Jack Ma’s Alibaba and Tencent Holdings operate similarly to America’s Facebook and Alphabet. They mine user data to refine digital services. Data strengths will lead to better products. As a result, large technology corporations become richer, more powerful and easily dominate the market. Over the years, the Chinese government has gone further than the rest of the world in tightening control of the Big Tech group. In March, Beijing publicly plans to “rule” platform companies that accumulate data to monopolize and swallow smaller competitors. Chinese authorities fined Alibaba $ 2.8 billion for abusing their dominant market position. Dozens of other major Internet companies also spent a month correcting their anti-competitive practices. China is tightening control of major tech corporations, including Alibaba and Ant Group of billionaire Jack Ma. Photo: Reuters. Risk of nationalization of data Beijing is pouring money into digital infrastructure, drafting new data usage laws, and building new data centers across the country. China’s goal is to be at the forefront of economic transformation in the coming decades. “It’s not a short-term initiative. China really sees data as an economic engine,” said Kendra Schaefer, Head of Digital Research at Trivium China. According to the China Institute of Information and Communication Technologies, China’s digital economy grows much faster than GDP in 2019. Market research firm IDC predicts China will hold about 1. / 3 of the world’s data in 2025, or about 48.6 zettabytes, 60% more than the US. The Chinese regime’s challenge is to get big tech companies to join. Those are the organizations that hold the most data in a country of 1.4 billion people. Companies like Alibaba and Tencent have benefited when China blocked foreign companies like Google and Facebook. Now, they have to share those benefits Professor Zhao Yanqing At a Chinese economic forum, professor Zhao Yanqing at Xiamen University pointed out that big tech companies have to nationalize data. “Companies like Alibaba and Tencent benefit when China blocks foreign platforms like Google and Facebook. Now, they have to share those benefits,” he added. However, most analysts say that is unlikely. Nationalization of data can hamper innovation. Beijing is in need of technological breakthroughs as the US works with its allies to prevent China from making new strides. “China needs highly competitive companies,” said Associate Professor Lizhi Liu at Georgetow University. “Nationalization of data will hurt technology companies. If data is taken away, they also lose their motivation and ability to innovate,” the expert added. Beijing’s difficult position In recent years, Chinese lawmakers have turned their attention to security. According to a law in 2017, authorities will have access to most personal data when necessary, even requiring foreign businesses to store data of Chinese customers in the country. Chinese leaders are now stepping up the use of big data to improve government services. Firefighters can use data to respond more quickly to calls. Hospital data will help track people down and prevent Covid-19 from spreading widely. Data lays the foundation for everything from smart cities to financial regulation to surveillance activities against dissidents. The Chinese authorities are also developing the digital yuan, competing with Ant Group’s Alipay and Tencent’s WeChat Pay. These two platforms now dominate the Chinese mobile payments market. Ant Group’s Alipay and Tencent’s WeChat Pay now dominate the Chinese mobile payments market. Photo: Reuters. The digital yuan will allow the People’s Bank of China to collect huge amounts of data about people’s transactions. Authorities have also made significant progress in the corporate social credit measurement system, from paying taxes, protecting the environment to product quality. The Chinese authorities insist that they will not force businesses to deliver data. “As for the use, development and exchange of data, we are still exploring the mechanisms,” said Hu Jianhua, deputy general manager of the Guizhou Big Data Development Administration. “Enterprises have ownership of the data. We encourage, but do not force them to, disclose the data,” he added. Data privacy is China’s “biggest obstacle” in dealing with the tech giants Expert Angela Zhang of the University of Hong Kong Another solution is that the government also invests in businesses. Last month, Bloomberg reported that China has proposed to set up a joint venture led by the People’s Bank of China (PBoC) with major technology corporations. The joint venture will monitor the data of hundreds of millions of users. Financial Times reports that billionaire Ma’s Ant Group declined the proposal. However, according to Bloomberg , a few years ago, when not agreeing to share data with the PBoC, Alibaba and Tencent faced many troubles. “Data privacy is China’s ‘biggest stumbling block’ in dealing with the tech giants. There is a conflict in protecting user privacy and fostering competition among these giants. Different backgrounds, “commented Angela Zhang, director of the China Law Center at the University of Hong Kong. China’s biggest companies are also looking to reduce damage from Beijing’s new rules. After Alibaba’s investigation is over, CEO Daniel Zhang said the company will continue to work with the data privacy regulator. Last month, Tencent’s Pony Ma proposed stricter rules for Internet businesses, including Tencent. He also has a “voluntary meeting” with the country’s antitrust agencies.

According to the New York Times billionaire Jack Ma – China’s most famous businessman – is away from the limelight. Close people revealed that he spent his time painting and practicing tai chi. The Chinese government is bringing a series of technology corporations into sight. The enormous wealth and influence of these businesses are said to be beyond the limit. Jack Ma, Alibaba e-commerce conglomerate and fintech (finance and technology) company Ant Group are Beijing’s biggest targets. European and American authorities have been trying to tighten control of the tech giants for years. However, they cannot make a big difference like what happened to the Alibaba founder in China. The Chinese government insists that businesses must commit to placing social stability above profits. Tencent founder Pony Ma (left) and billionaire Jack Ma at an event in Beijing in 2018. Photo: New York Times. The unprecedented “punishment” campaign The Beijing government is not just tightening the control of Alibaba. Ant Group CEO Simon Hu resigned in March. Just a few days later, Pinduoduo founder Colin Huang stepped down as chairman. Also in March, at a meeting, Tencent founder Pony Ma proposed stricter rules for Internet businesses, including Tencent. He also has a “voluntary meeting” with the country’s antitrust agencies. Last week, China’s antitrust agency summoned top 34 Internet companies to discuss new rules of fair competition. The discussion revolves around changes in business. Companies are committed to taking it seriously. “The new rules will require Internet platforms to look back on how they innovate in the future. And as a result there will be less innovation,” said Gordon Orr, a board member of Meituan, company. Chinese food delivery, comment. However, New York Times The Beijing government will not be too heavy on Alibaba and other Chinese Internet corporations. Even as tightening oversight, Beijing still praised the group’s contributions to the economy. Pinduoduo founder Colin Huang stepped down from his chair as the company’s chairman. Photo: New York Times. Chinese President Xi Jinping wants the economy to be driven by innovation from Chinese tech corporations, instead of big foreign ones. “It may be too early to declare that Jack Ma has failed”, New York Times comment. “To the success and performance of the Chinese economy, Alibaba is more important than any other business,” commented Richard McGregor of the Lowy Institute. “The Chinese authorities want to continue reaping the benefits of Jack Ma’s company, but on their terms. Beijing doesn’t nationalize Alibaba. The company is just narrowing its operations.” “Alibaba has a perfect opportunity to grow into a world-class company,” said Wang Guoping, an official in Hangzhou city (where Alibaba is located), in the 2000s. “What a world-class company needs most is a soul, a leader, a world-class businessman. I believe Jack Ma meets those standards, “he added. Change your attitude According to Porter Erisman, one of Alibaba’s first executives, in the 2000s, most employees at Alibaba were just trying to make a lot of money. Jack Ma alone had another concern. He fears that one day the company will become too big. And Alibaba could be under pressure for holding huge market power. In 2011, Jack Ma understood that his ambitions could make regulators dissatisfied. Ma quietly took over Alipay – Alibaba’s payment service. That move angered one of Alibaba’s biggest shareholders – Yahoo -. However, according to Jack Ma, that is the action needed to meet the new Chinese regulations. Alipay later became Ant Group. As Alibaba grew, Jack Ma began meeting presidents and movie stars admired by many Chinese businessmen. “That changed the views of Jack Ma about himself and the Chinese government,” said Duncan Clark, Chairman of BDA China, commented. Mr. Simon Hu, CEO of Ant Group, resigned in March. Photo: New York Times. When Jack Ma stepped down as Alibaba chairman in 2019, a Chinese state-run newspaper commented: “There is no such thing as the Jack Ma era, only Jack Ma is part of this era.” Chinese leaders need the private sector to sustain economic growth. However, they do not want this area to exert too much influence on society. In October 2020, when Ant was preparing to go public (IPO), Jack Ma criticized Chinese financial regulators at a conference in Shanghai. He describes the Chinese banking system “operates like a pawnshop.” Shortly after, Ant’s IPO was ordered to be canceled. The Chinese government wants to continue reaping the benefits of Mr. Ma’s company, but on their terms Richard McGregor, senior fellow at the Lowy Institute “In China, it is difficult to say that the emperor is not dressed,” commented Kellee S. Tsai at the Hong Kong University of Science and Technology, referring to the short story “The Emperor’s New Clothes”. Mr. Ma has also rarely appeared since then. According to the source of the New York Times , in January, he showed up for an internal chat. The staff then shared Mr. Ma’s message to reassure everyone. Recently, the Hurun Report team (based in Shanghai) estimated that for the first time after 3 years, Mr. Ma was not among the three richest people in China. First place belongs to Mr. Zhong Shanshan, a well-known billionaire behind a group of famous bottled water and pharmaceutical companies.

According to the Nikkei Asian Review After a record $ 2.8 billion fine, trouble is not over for Alibaba’s billionaire Jack Ma. Because the corporation’s media empire worries the Chinese authorities. Alibaba is famous for e-commerce platforms like Taobao and Tmall. However, it also owns a media empire that includes media, media and broadcasting, social media platforms, video streaming websites, film production companies, and advertising agencies. . The above media platforms are effective tools to promote other Alibaba businesses. Like Alibaba, many tech companies are competing to build a vast ecosystem, from e-commerce to entertainment. Alibaba could continue to face trouble after a record $ 2.8 billion fine. Photo: Reuters. Communication power However, as the influence grew, Alibaba fell into the sights of the Beijing authorities. Fintech (financial technology) company Ant Group was asked to postpone its IPO (initial public offering) at the end of last year. By mid-March, Beijing asked Alibaba – which now owns the flyer South China Morning Post – divestments in the media sector due to fears of the company’s growing influence, according to the company Wall Street Journal. Out South China Morning Post Alibaba owns video streaming platform Youku and a 30% stake in social networking site Weibo. The group also invests in Bilibili, known as the Chinese version of YouTube, news conglomerate Yicai Media Group, news websites. 36Kr, Huxiu.com and Focus Media – China’s largest offline advertising agency. “To be fair, Alibaba’s control over information, media and personal data in China has outstripped the tech giants in other countries,” said Professor Zhu Ning at Hoc commented Shanghai Advanced Finance Institute. Alibaba’s control over information, media and personal data in China has outstripped tech giants in other countries. – Professor Zhu Ning Last December, the business news site Huxiu – funded by Ant – has targeted Chinese antitrust regulations. Huxiu warns that Beijing’s tightening of regulation will affect Internet companies and hurt the country’s economy. The article was published after China’s market regulator opened an investigation against Alibaba. The four-month investigation ended with a record 18 billion yuan ($ 2.8 billion) fine for Ma’s group. However, the post was removed from Huxiu’s website shortly after. The site also stopped posting news for a month. Last year, Weibo was also found to have deleted posts, closed comments, and removed highly searched topics in an attempt to quell rumors related to a senior Alibaba executive. Alibaba is Weibo’s second largest shareholder and largest ad customer. “Alibaba’s power to shape public opinion is amazing,” the paper said People’s Daily of the Chinese state. Alibaba invests heavily in the media sector, including newspapers, electronic media and broadcasting, social networking platform … Photo: Nikkei Asian Review. As the user’s information source increasingly depends on technology platforms, the influence of these platforms on the public opinion increases. That forces the Chinese regime to change its attitude. In fact, in 2014, the Chinese government openly encouraged the traditional media and Internet companies to further combine and invest in each other. At the moment, authorities are concerned that Alibaba’s excessive control over the media will help it strengthen its dominance in many other sectors outside of e-commerce and finance. online. Media investments mean a lot for Alibaba, analysts say. Tencent Holdings – a rival of Alibaba – owns messaging app WeChat and ByteDance, the parent company of TikTok (known in China as Douyin). Meanwhile, billionaire Jack Ma’s group lacks self-developed media platforms to attract and retain users. “An ecosystem that lacks a media platform is at a disadvantage in terms of competition. Looking at competitors, Alibaba sees the benefits of having media resources,” Nikkei Asian Review quoted Mr. Martin Bao, an analyst at ICBC International in Shanghai, commented. Fierce competition Tencent’s 1 billion WeChat user platform is the driving force behind the growth of e-commerce site Pinduoduo. Tencent is the second largest shareholder in Pinduoduo. Thanks to the huge number of users, short video platform Douyin is also able to quickly grow its e-commerce business through live streaming. The media also helps increase advertising revenue. “Advertising is the core business of Internet corporations, bringing stable revenue and low cost,” Bao explained. Alibaba does not disclose advertising revenue in its financial statements. However, in 2017, Alibaba CFO Meggie Wu said 60% of the company’s revenue came from advertising platforms. Stores buy advertising space on Alibaba’s websites and corporate media partners. The Chinese regime’s message is very clear. They decide what people should pay attention to, not private corporations – Associate Professor Fang Kecheng According to research firm eMarketer, Alibaba accounts for more than 30% of the Chinese e-advertising market in 2020. The group cooperates with more than 4,000 media partners, 100,000 mobile applications, reaching 98% of the population. in a country with a billion people. Alibaba’s media investment “is primarily aimed at expanding the ecosystem at all costs to prevent other companies like Tencent and Baidu from dominating,” said Leo Sun, a technology expert at The Motley Fool. cyber “. Alibaba’s rivals also invest significantly in the media. For example, in 2020, Baidu spent $ 3.6 billion to acquire the social media platform Joyy’s live-streaming business. Tencent developed its own video platform and online news site, and invested in Kuaishou and Bilibili. The Alibaba founder’s influence in the Chinese business world attracts the attention of the Beijing authorities. Photo: Reuters. However, Mr. Sun believes that corporations like Tencent, Baidu and ByteDance are unlikely to fall into the sights of Beijing authorities like Alibaba. Their investments are still related to the core business and not as extensive as Alibaba. Meanwhile, Alibaba founders are often known for their unique ideas. Mr. Ma also likes to convey his message to a wide audience. He even opened a business school for Chinese business leaders. Ma’s influence in the business world caught Beijing’s attention. Sheet Financial Times reported that his school had been forced to stop training. “The Chinese government’s message is very clear. They decide what people should pay attention to, not private corporations,” said Associate Professor Fang Kecheng at the Zhongshan Zhongzheng University.

In addition, this company will serve other financial institutions such as state-owned banks to compete in lending with fintech companies. According to a source close to the Financial Times, Ant Group wants to lead the new company. But PBoC said that this will create a conflict of interest. China wants to take control of Ant Group’s huge data warehouse. (Photo: FT) “The first priority is to ensure that the new business fully complies with the regulations. State participation will help the PBoC achieve those goals,” a source revealed. In January, the PBoC announced regulations requiring Chinese companies to secure government approval before being allowed to provide personal credit services. These companies have to ensure that they have 3 licenses and all are subject to government control. PBoC officials held a conversation with Ant Group executives on April 12. This month, Chinese regulators also asked Ant Group to restructure and sanction Xi. Alibaba Group Jack Ma’s record fine of 2.8 billion USD. Banks in China have long complained that Ant Group has benefited by not having to comply with the same strict regulations on lending as they do. The company has established a dominance in China with more than 700 million users a month on Alipay, an Alibaba mobile payment app. By the end of June 2020, Ant Group had developed a consumer lending platform with outstanding credit to about 1,700 billion yuan ($ 262 billion), more than any Chinese bank. Come on. In addition, the fintech company charges banks for loans on their apps. “Ant Group’s credit database offers a lot of value to banks,” said a former PBoC official. A person knowledgeable about this issue commented: “Ant Group needs to find a way to legalize this data warehouse. The proposed solution is to set up a credit reporting company approved by PBoC”. But there are also opinions that state control could affect the ability to collect and analyze information for Ant Group’s core business units, including consumer lending. “Ant Group really wants to hold on to its most valuable assets,” said a source. The central bank of China will release a report this Sunday on the creation of a state-controlled data company. However, neither Ant Group nor the PBoC have yet to comment on this. Phuong Anh (According to Financial Times)

The hobby of the world’s richest billionaire Jeff Bezos, the founder of e-commerce empire Amazon, is extremely expensive. He spends his time exploring the ocean looking for NASA rockets that were dropped during space launch. He spent three weeks on an underwater “rocket hunt,” according to Entrepreneur. Photo: David Ryder / The Washington Post. Google cofounder Sergey Brin, who is worth $ 94.8 billion, is passionate about thrilling sports, including skydiving or flying trapeze. He even persuaded some brave Google employees to play with them to form a team, according to Tatler. Photo: Google+. Chinese billionaire Jack Ma, who has a net worth of $ 47.3 billion, is passionate about performing arts on stage. The former Alibaba Group CEO has appeared on the stages of many Chinese music festivals. Jack Ma’s most famous performance was the impersonation of Michael Jackson at his company’s 2017 annual party. Photo: TPG / Getty Images. 25-year-old young man Eric Tse in Hong Kong (China) became a billionaire in just one night. In 2019, Eric Tse’s father decided to “give” his son a 21.45% stake in Sino Biopharmaceutical Pharmaceutical Group, equivalent to $ 3.8 billion. Besides attending parties with singer Rihanna, basketball star Yao Ming, model Bella Hadid and Prince Charlene of Monaco, billionaire Eric is also a lover of outdoor sports including paragliding. , fly over the French Alps and swim with dolphins in the Bahamas. William Belo, a Filipino billionaire with a fortune of $ 1 billion, not only owns a chain of 57 furniture and home improvement stores, but is also known for his unique hobby: raising crocodiles. Photo: Forbes. According to Bloomberg, Mr. Belo has two farms of 23,000 crocodiles raised for commercial use. Their skins are sold to luxury brands such as LVMH, while meat used to make Hungarian sausages and Filipino food called sisig.

The controversial “choose 1 in 2” strategy in the past five years in China has finally become qualitative in imposing monopolistic business practices, and Alibaba has become the first “victim” to gender. This country’s official “stunned”.

Penalties of up to 18,288 billion yuan ($ 2.8 billion) issued by China’s State Market Supervision Department against Alibaba account for 4% of the group’s 2019 revenue.

The group of billionaire Jack Ma has continuously encountered bad luck in recent times.

Not merely a punishment, the meaning of the case went far beyond its original purpose. This is said to be a warning to the entire Internet industry in China, and the move also shows Beijing is accelerating its war of antitrust against big tech companies.

Alibaba: “Big trees catch the wind”

In fact, legal disputes over Alibaba’s monopoly conduct have long existed. Starting in November 2015, Alibaba’s “choose 1 in 2” policy under Jack Ma was accused of disrupting the e-commerce market and many platforms repeatedly called for a boycott of this behavior.

It was not until December 2020 that the State Market Administration of China conducted the first antitrust investigation and a final decision was made. Basically, Alibaba immediately expressed its attitude to cooperate with the authorities. “We recognize that today’s penalty is a warning and motivating us, it is a standard and concern for the industry’s development,” an Alibaba representative said in the Letter. customers and the public.

In the opinion of many market analysts, that penalty is inherently beneficial for Alibaba, because conservative policies in recent years have made them gradually lag in e-commerce. This also allows the Internet economic platform to re-focus on sustaining innovation, instead of relying on dominant positions to “protect” the market. More importantly, the warning for Alibaba will form a strong competitive advantage in the market in the future.

Other platforms started to be wary

In addition to warning Alibaba, the penalty serves as a deterrent to the entire Chinese internet industry. After all, the problem of monopoly is not limited to just one platform and with the current scale of operations, it is completely understandable that Alibaba is being targeted first.

Over the years, the platform economy has benefited from the rapid growth and popularity of the Internet. Based on the cumulative effect, the platforms quickly formed certain areas, especially e-commerce. Up to a certain stage, natural monopoly properties will arise and the larger the platform scale, the more obvious the advantage.

However, “if the platforms misuse this advantage, leading to the formation of unfair competition, the behavior is suspected to be illegal”, the punishment that the Administration Department oversees. China has proved it. Realizing the risk, many leading e-commerce platforms such as Taobao, Tmall, JD, 1688 … started to change policies to avoid becoming the next victim of the regulator.

The Internet antitrust campaign in China is accelerating

“This time Alibaba was fined and signaled that relevant departments had tightened antitrust oversight of the platform economy. I believe there will be other antitrust enforcement cases in the future, not just this one, “said a researcher at the Center for Intellectual Property Research, University of Political Science and Law.

In addition, strengthening antitrust and preventing capital expansion causing market disruption is also the Chinese government’s consistent attitude, which was specifically mentioned at the Central Economic Work Conference held. at the end of last year. However, from the development context over the years, the monopoly monitoring here still has a certain delay.

With the rapid development and changing of Internet economic platforms, law enforcement or administrative governance need to keep up with the times, forcing the Chinese authorities to speed up the antitrust war. This is expected to create fair competition and maintain standardized market vitality in the future.