China releases strict anti-monopoly rules for country’s tech giants: Key things to know

China’s market watchdog has officially released a new set of anti-monopoly guidelines aimed at limiting the power of internet platforms. The rules, released on Friday (February 13), are designed to ensure fair competition and prevent platforms from charging unfairly high prices to consumers. One of the most significant parts of the new guidelines targets the algorithms of these platforms.According to a report by news agency Reuters, the government has warned companies against using sophisticated technology to coordinate pricing or traffic distribution with their competitors. The watchdog is also said to be putting an end to a common industry tactic known as “all-network lowest price” requirements.This means that dominant platforms can no longer force sellers to lower their prices just because they offered a discount on a rival site. Moreover, the smaller platforms are now on notice, they can also face monopoly charges if they demand that merchants give them “equal or better” deals than their competitors.The new guidelines strictly prohibit forced exclusive partnerships which means that major platforms are now banned from demanding that merchants pledge not to work with competing apps unless there is a justifiable reason.Platforms are also advised against using transaction history, device types, or spending habits to charge different prices to different users for the same service.In December last year, China proposed strict rules for artificial intelligence (AI) to safeguard children and prevent chatbots from offering advice that could lead to self-harm or violence. Under the proposed rules, developers will need to ensure their AI models do not generate content that promotes gambling. Once finalised, the rules will apply to AI products and services in China.