context: Since Beijing's crackdown on big tech in 2021, tech giants have been asked to unblock rival apps. On 10 April 2024, Alibaba was fined C¥18.2 bn for antitrust practices and made moves to open up some non-core platforms. Wechat Pay remained blocked on Taobao and Tmall. Progress was slow until late 2023 when tech giants started cutting underperforming side businesses amid economic downturn pressure.
The SAMR (State Administration of Market Regulations) announced the completion of Alibaba’s three-year rectification on 30 August 2024, reports Xinhua.
Alibaba has ceased monopolistic practices, such as forcing consumers to choose between its platform and those of competitors, confirmed SAMR. The anti-trust regulator highlighted Alibaba’s rectification achievements, including
- enhanced compliance and platform governance
- improved market competition, fostering a healthier business environment
- elevated quality of platform economy development and increased market competitiveness
SAMR said it will continue to supervise Alibaba’s operations, balancing regulatory oversight with promoting growth in the platform economy.
Following SAMR’s decision, Alibaba’s Taobao and Tmall announced the addition of WeChat Pay as a payment option on 4 September 2024, reports Caixin. This integration comes after a long-standing barrier between Alibaba’s and Tencent’s payment services.
Caixin suggests that collaboration between these tech giants is driven by
- regulatory tightening
- pressure from a sluggish post-pandemic economy shifting companies from high-growth to survival mode