Concerns regarding potentially anti-competitive actions by Chinese internet companies frequently arise annually as Singles’ Day approaches – a period characterized by intense activity from online retailers employing various strategies, sometimes questionable, to attract both sellers and customers. This year, with the world’s biggest shopping event slated for November 11, China’s regulatory body revealed proposed regulations designed to curb monopolistic practices exhibited by the nation’s leading internet corporations.

Throughout recent years, prominent e-commerce businesses such as Alibaba, JD.com, and Pinduoduo, alongside food delivery service Meituan, social media powerhouse Tencent, and other significant industry participants, have faced accusations of engaging in unfair competitive practices to differing degrees. The new proposals from Beijing address issues like varying prices for different consumers, giving preferential advantages to merchants who commit to exclusive deals with platforms, and the mandatory gathering of user information.

Trading in Hong Kong on Tuesday afternoon witnessed declines in the stock values of several of China’s largest technology companies: Alibaba decreased by 5.1%, JD.com by 8.78%, Meituan by 10.5%, and Tencent by 4.42%.

Representatives from Meituan, JD.com, and Pinduoduo stated they had no comment regarding the draft rules. Responses from Tencent and Alibaba were not immediately available.

The stated objective of the regulatory proposal is “to prevent and halt monopolistic conduct within the economic activities of internet platforms, to reduce the expenses associated with regulatory compliance for both enforcement agencies and businesses, to strengthen and refine antitrust regulations pertaining to the platform economy, to safeguard market equity, to protect the rights of consumers and the public, and to foster the robust and sustained growth of the platform economy.”

Essentially, China intends to re-establish control within its expansive internet sector, which has been instrumental in the emergence of some of the world’s most highly valued companies. Recent significant legislation impacting its technology leaders includes the e-commerce law enacted in 2018 and the draft data security law that was open for public feedback earlier this year. Notably, just recently, Beijing unexpectedly suspended Ant Group’s planned initial public offering, demonstrating increased governmental scrutiny of the fintech sector.