AUse NTITRUST Being an American like an apple pie. The Boston Tea Party was, in part, a protest against the monopoly of the British East India Company. The word itself comes from the trust of Standard Oil, which dominated the American economy in the 19th century. For 20 days, it became the American Charter for Political Freedom, not just for Freedom. Compare this with China, a communist dictatorship whose antitrust law introduced in 2008 has been used only to club foreign companies. With such a hand, trustbusting as an Orwelliangobbledygook can be easily dismissed.
But suddenly, antitrust law in China came to fruition in the way police internal affairs did, thanks to the British police show “Line of Duty.” Dawn of Destruction like Stasi. Simply put, it turned the country’s former tech giant into a simple poodle.
Onslaught represents the rise of a new kind of regulatory authoritarianism. Both the United States and China have similar concerns about the impact of their major tech companies. However, because nodded to the warriors Xi Jinping president can be trusted in the fall of last year, China’s antitrust efforts speed, range, jumping over the United States in severity, gave a new stimulus to the word “Te crash” .. For those who are dissatisfied with the power of American tech giants, China offers a master class of how to reduce them to size. If so, that is, America can emulate it.
Let’s start with the speed, which is the Communist Party’s greatest advantage over American democratic disasterrs. When the Baron of Technology treats politicians like Patty, do not invite them to a daunting parliamentary hearing. Like Jack Ma, co-founder of Alibaba, China’s largest e-commerce company, where China founded Ant Group, a stable companion to FinTech, it forces them to be unobtrusive for some time. .. Immediately, the millionaire class received a message. After the founders of two other Chinese tech giants, Pinduoduo and ByteDance, humbled Ma, it took more than six months to announce their withdrawal from public life. Also, it took less than four months to investigate antitrust law before Alibaba was fined $ 2.8 billion in April. In contrast, Google’s trial date was sued by the US Department of Justice last October (Do oJ) And 11 states suspected of being exclusively abused by its search business will not come by 2023. Yawn.
Next, the scope. Don’t get in the way of a nasty court like America. Throw a book to a prank maker using all the tools offered by the one-party system. As Angela Chan puts it in the book “China’s Antitrust Exceptionalism” written before the latest technology crackdown, monopoly Chinese regulation begins with institutions competing for power and influence. Their recent rampage has been supercharged by amended legislation on a series of subjects. They have fined businesses for crimes ranging from online price discrimination to merchant abuse to fraudulent technology merger transactions. A few days after the initial public offering in New York, a recent crackdown on ridehaling giant Diddy focuses on concerns, including data security and espionage.
Do not expect Didi, or an alleged monopoly, to seek protection from the courts. In China, trustbusters are rarely subject to judicial checks and balances. The Chinese agency wrote Mr. Zhang and is in charge of “investigation, prosecution, and ruling.” In other words, they have police, judges, and a jury in one. The opposite is true in the United States. In June, a U.S. judge dismissed a six-month-old proceeding by the Federal Trade Commission (FTC), US antitrust regulators against Facebook claim that the government never proved that social networks have monopoly power. Second round to totalitarians.
Third, the severity. What tech giants are most afraid of is not fines. Like Ant, business models are collapsing and reputation is declining. Bureaucrats can use the wrath of state media and populists to disrupt villain sales and stock prices. In the crackdown this year, the value of China’s five largest Internet companies has plummeted by a combined $ 153 billion. In the United States, despite proceedings, investigations and hearings, the value of Alphabet, Amazon, Apple, Facebook and Microsoft has skyrocketed by $ 1.5 trillion. When Chinese companies surrender, American companies fight back and openly challenge adversaries such as Lina Khan. FTC..Jonathan Canter, President Joe Biden’s Google Bashing Pick Do oJThe antitrust department can expect similar treatment.
Pay attention to what you want
Perhaps this all evokes envy among Washington’s Trustbusters, DC— Recent “China” was no more dirty than “technology”. China has not only taken the antitrust mantle from its superpower rivals. It did so strategically. It reinforces Mr. Xi’s control over high-tech billionaires, a potential rival of popular admiration. This will allow the central government to better monitor the ocean of digital data. And it encourages independence. The aim is to have a thriving technological scene that creates world-leading innovations under the thumbs of the Communist Party.
However, Outal Key has its own risks. Already, China’s tech darling has canceled plans to issue shares in the United States, derailing the gravy train that allowed listed Chinese companies to reach a market value of nearly $ 2 trillion. I will. Techrash also risks oppressing the animal spirit, which makes China a breeding ground for innovation. Ironically, just as China applies water torture to tech giants, both China and the United States intensify digital competition as incumbents break into each other’s territories and are taken over by new challengers. I’m witnessing it. It’s time for encouragement, not crackdown. Instead of dismantling tech giants, American trustbusters need to strengthen what has always contributed most to the country: the free market, the rule of law, and due process. That is one lesson that the United States can teach China. That is the most important lesson of all. ■■
This article was published in the printed Business section under the heading “War v Jaw Jaw”
China offers a masterclass in how to humble big tech, right? Source link China offers a masterclass in how to humble big tech, right?