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China orders tech giants Alibaba and Tencent to open platforms up to each other: Reports

MediaIntel.Asia

12th September, 2021 21:10 IST China Orders Tech Giants Alibaba And Tencent To Open Platforms Up To Each Other: Reports Beijing has been framing and imposing rules on tech companies whose data poses potential security risks from being listed in a foreign land, including the US. Written By Srishti Jha Image: AP
China's Ministry of Industry and Information Technology directed the technology firms, including Alibaba Group and Tencent to refrain from blocking each other's website links from their platforms. The ministry proposed standards for instant messaging services to the companies, directing that all platforms must be unblocked within a stipulated timeline, according to a Chinese newspaper. Besides these two entities, ByteDance, Baidu, Huawei and Xiaomi were present at the meeting. China's crackdown on tech companies
China's ministry stated an ultimatum to the companies and warned against non-compliance. It asserted that it would resort to other measures to ensure the instructions are followed. The move is the latest in a regulatory crackdown spanning on tech, gaming to even entertainment industries. Recently, China imposed multi-pronged restrictions on tech companies, posing threat to curb their ability to be listed in the United States, seeking to tighten legalities.
Beijing has been framing and imposing rules on tech companies whose data poses potential security risks from being listed in a foreign land, including the US. Experts have commented that the ban is imposed even on differences in ideology and rationale. In April, the State Administration of Market Regulation imposed a record-breaking fine of USD 2.7 billion on Alibaba Group for anti-monopoly violations. The tech giant was slapped with the fine after an anti-monopoly probe revealed the Group had exploited its dominant market stature for years. China's internet is dominated by a few renowned tech giants who have historically blocked links and services by rivals on their platforms, leading to what analysts term as 'walled gardens'. Modern regulators have cracked down, accusing companies of igniting monopoly and restricting consumers' options, thus, choices.
In July, the Wall Street Journal reported that Alibaba and Tencent were gradually considering opening up their services to each other. Introducing Tencent's WeChat Pay to Alibaba's Taobao and Tmall e-commerce in the economy. On the other hand, experts stated that Tencent and Alibaba, along with its affiliate Ant Group have curated ecosystems that cannot be interconnected, which does not play out well for users. Meanwhile, it forces other internet companies to take sides from the two entities.

This data comes from MediaIntel.Asia's Media Intelligence and Media Monitoring Platform.

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