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- The anti-monopoly law will give the government unlimited authority to control the business dominance of entrepreneurs like Jack Ma
- Alibaba and Ant’s co-founder Jack Ma have not been seen on the public platform since Ant’s IPO was derailed last month.
The announcement of Jack Ma’s anti-monopoly investigation against companies is seen as the beginning of the government’s crackdown on his business empire spanning from e-commerce to logistics and social media. Experts say that the pressure on Jack is part of the government’s exercise to control his growing influence in the Internet world. According to the draft anti-monopoly law issued in November, the government will get unlimited right to control the business dominance of entrepreneurs like them.
Fear of damage to economy due to huge size
In fact, regulators have increased their pressure on the way companies such as Alibaba and Tencent Holding, which are considered as a mirror of China’s economic prosperity and its technical strength, are affecting every aspect of the lives of crores of users. Researcher Dong Shimiao of the Zhonguankun Internet Finance Institute says the government’s concerted efforts to control Jack Ma’s business empire, which could pose a threat to the economic system, are intensifying due to the sheer size. The government wants to replace them with smaller and less dominating but according to rules, more companies to run.
Public from november Platform Jack not seen
Alibaba and Ant’s co-founder Jack Ma have not been seen on the public platform since Ant’s IPO was derailed last month. Sources familiar with the matter said that the government had instructed Jack to stay in the country in early December. He says that there will be no personal loss to Jack due to government action but this can be considered as a warning given to him by the government. Indeed, the dominance of technology companies is seen as a growing threat to the country’s political and financial stability.
Political leaders silence on anti monopoly laws
Investors have different opinions about the extent to which the government can tighten up with Alibaba and other companies in making new monopoly laws. Political leaders are not saying much about how strict the government can do in matters related to monopoly and why it is doing so now. Ant regulators, including China’s central bank, are being called separately for a meeting on strict financial laws that could prove to be a threat to the world’s largest online financial company.
Alibaba and Tencent dominate China’s Internet ecosystem
China’s Internet ecosystem, which has survived the competition of Google and Facebook for a long time, is dominated by two giants – Alibaba and Tencent. Both these giants have invested in most startups ranging from Artificial Intelligence to Digital Finance in the country. With their support, the business of big food and travel companies such as Metuan and Didi Chushing has reached billions of dollars, while companies such as Ticketcock’s BiteDance, which have grown outside its sphere of influence, have remained low. With the enactment of the anti-monopoly law, a wide range of situations may arise in front of veterans, ranging from imposing fines on them and splitting them into pieces. In this case, several government agencies working together is considered a bad signal for the Internet sector.
Taking the first step of government against monopoly
The government’s whip on Alibaba and other sector companies ran in November when Jack spoke of a public platform lagging behind Chinese regulators. Soon after, the regulators suspended Ant’s $ 35 billion IPO and the anti-monopoly regulator stirred the market by enacting draft legislation. The Communist Party of China mouthpiece People’s Daily said on Thursday that the government’s first priority is to take steps against alleged monopolies in the country.