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be enforced in an arbitrary or opaque manner that compels
companies and prominent businesspeople to serve the
leadership’s political interests, granting the government
greater control over the information space and access to
sensitive data. For example, in April 2021, Russia's Federal
Antimonopoly Service opened an investigation into
allegations that Google was “abusing its dominant market
position in video hosting services” at a time when the
government was also demanding that YouTube, a Google
subsidiary, remove content posted by opposition activists.
Chinese authorities have been among the most aggressive
in addressing monopolistic practices and market abuses,
though their interventions have raised concerns that the
government is more interested in reining in these companies’
autonomy and influence over the economy, public debate,
and information space than in protecting the rights of citizens.
New competition rules issued in February 2021 signaled the
regime’s unease with the rapid growth and consolidation of the
country’s tech sector. The regulations primarily target Alibaba
and Tencent, with a specific focus on their respective financial
services Alipay and WeChat Pay. The measures ban price fixing,
predatory pricing, and the use of algorithms to manipulate the
market. Two months later in April 2021, regulators slapped a
record $2.8 billion fine on Alibaba for using its algorithms and
unfair access to data to further entrench its market position.
Ant Group, an Alibaba affiliate and the parent company of
Alipay, was also ordered to restructure into a financial holding
company, putting it under stricter banking regulations. Alibaba
was reportedly ordered to divest its media holdings, including
stakes in the social media platform Weibo, due to the ruling
Communist Party’s concern that the company’s influence over
public opinion could rival its own.
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The crackdown featured prominent signs of political
motivation and direct pressure on business leaders. Alibaba
founder Jack Ma had disappeared from public view for almost
three months after contradicting senior government officials
and criticizing regulators at an October 2020 conference.
That November, a scheduled initial public offering for Ant
Group was canceled, and an investigation into Alibaba’s
“monopolistic practices” was announced in December.
Ma resurfaced in an online video ceremony in which he
recited regime talking points about public welfare and rural
revitalization.
Policies that ensure competition and limit concentrations
of power among tech companies are crucial for ensuring a
healthy democracy, but authoritarian states will continue
to use such policies as a tool to reinforce their own
unchecked authority.
Chinese authorities have been among
the most aggressive in addressing
monopolistic practices and market
abuses, though their interventions
have raised concerns that the
government is more interested in
reining in these companies’ autonomy
and influence.
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