China Warned 34 Technology Companies

China warned 34 technology companies. China has asked companies to correct their anti-competitive practices.

The Chinese government, which fined e-commerce giant Alibaba $ 2.8 billion last week for violating the anti-monopoly law, warned 34 tech firms to regulate their anti-competitive practices. Shares of Tencent and Meituan began to decline rapidly after the Chinese State Market Regulatory Authority issued a statement for companies violating market dominance, monopolization and similar rules. In the aforementioned statement, it was stated that 34 companies should review their internal audit until next month, make the necessary arrangements and commit to fully comply with the rules by engaging in legitimate activities. Following a 4-month investigation into Alibaba, one of the world's leading e-commerce companies, a record fine of $ 2.8 billion was imposed last week on charges such as anti-competitive practices and unfair market dominance. While the penalty was less than predicted, Alibaba shares have gained as much as 7 percent since then. Tencent and Metuan shares went down due to the perception that they will be the next target. It was informed that there is a meeting between the industry leaders such as Tiktok's owner ByteDance, Baidu, JD.com and regulators. Regulators warned internet companies of monopolistic practices, giving the "example of Alibaba". Meituan and JD shares fell more than 3 percent.     This article has contributions of Bloomberg HT.