Media Related Policy and Regulation Updates 2021Q1

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Left： The 14th A Five-y ear Plan And 2035 Vision Outline (Draft)

RIght： World Internet Conference released The Blue Book

The antitrust action goes deep into the Internet industry to curb the unfair competition:

In December 2020, the SAMR imposed administrative penalties in accordance with the Antitrust Law on three enterprises, Alibaba Investment, Yuewen Group and Fengchao Network, for failing to report illegal concentration cases. The move sent a clear signal to the market to “Strengthen anti-trust and prevent disorderly expansion of capital” , which is also in line with the global trend of anti-trust regulators to step up censorship of large Internet technology giants.

n 2021, the State Council formulated and issued the Anti-trust Guide of the Anti-trust Committee of the State Council on the field of platform economy to define the market involved in the platform economy and clarify that the potential antitrust issues should be analyzed by case. Many of the detailed provisions is to prevent e-commerce, delivery platforms OTA platforms and O2O service platforms leverage their own data from abusing community group purchase pricing power, blocking user data with high barriers across platforms and other frequent problems. The guide also covers the regulation of collaborative behavior among enterprises in the industrial chain, the strengthening of merger and acquisition censorship of Internet platforms and the regulation of abuse of market dominance by large enterprises against the rights and interests of enterprises and small enterprises within the platform.

The Internet industry and platforms have the advantages of scalable economy and network externality, those companies obtain diversified information such as the transaction, huge volume of customer data resources and market share. While maximizing the network effect and market efficiency, it is easy to reach the “winner-takes-all” situation, and then form the capital advantage of investment and M&A and maintain monopoly for a long time. The Internet enterprises roared without strict regulation in the past, but now it start entering the new stage as exposed problems of monopoly enterprises restraining innovation and competition, damaging consumer welfare and so on.

With the increasing proportion and importance of digital economy, maintaining competition freedom with well organized and refining market structure are the goals of antitrust. And this guidance document, indicates the direction of antitrust action in Internet domain and will push forward the amendment of the antitrust law in the foreseeable future.

The government and market jointly push personal information security protection enter a phase:

After the two-year action of APP illegal collection and use of personal information, referring to the practical experience of “The Identification Method Of Collecting And Using Personal Information Illegally By App” and “The Self-assessment Guide For Collecting And Using Personal Information Illegally By App” four government departments formally promulgated The Regulations On The Scope Of Necessary Personal Information For Mobile Internet Applications in March, which will take effect in May 2021. The regulation aims to solve the problem of Apps collecting personal information exceed the scope, regulate the collection of personal information of mobile Internet Applications (apps) , and ensure the security of personal information of citizens. The regulations state that implied to apps and mini-programs, clarify the scope of necessary personal information and emphasize the principles of “Informed consent" and “minimum necessity”, and operators cannot deny users access to the basic features of the App if the do not consent provide their personal information.

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