Why China Is Cracking Down on Its Technology Giants: QuickTake

With fines, official orders and compulsory restructuring. In late July, China ordered more than two dozen tech companies to conduct internal inspections and deal with issues such as data security. Previously, Ant, which was about to go public before it was stopped by regulators in November 2020, agreed to transform itself into a financial holding, thereby subjecting itself to capital requirements similar to those for banks. Regulators fined Alibaba a record $ 2.8 billion for allegedly monopoly behavior and asked it to change its business practices. Didi had to remove his main app and dozens of others from smartphone stores as he faced unprecedented fines. Tencent, the operator of the WeChat super app, has been ordered to give up exclusive music streaming rights, while Meituan and Pinduoduo Inc. have also come into conflict with regulators. The tutoring sector, where companies such as the TAL Education Group received billions of dollars in estimates, saw its future redefined in a comprehensive order that banned them from making profits and raising capital, and also restricted their teaching opportunities. The speed of change has been staggering, with rules to curb monopoly practices designed and completed in just three months.