Thirty-four tech firms attended an administrative and supervisory meeting held on Tuesday. They were given approximately one month to "rectify their monopolistic acts and tax-related irregularities or violations" after an internal government probe. These firms were told they had about a month to correct any practices that "harms competition.
The meeting also outlined how these tech firms create unfair competition in the economy that prevents innovation and development and harms business operators and consumers' interests. It was also noted at the meeting the tech firms must change their ways to conform to national interests.
During the meeting, SAMR officials told the tech firms that Alibaba's anti-trust case should be a big wake-up call. On Saturday, SAMR slapped Alibaba with a monstrous $2.8 billion fine after a months-long probe. SAMR found the e-commerce company violated the country's Anti-Monopoly Law. Regulators also ordered Alibaba affiliate Ant Group to overhaul its business.
"Following the decision and penalties levied by SAMR's anti-monopoly investigation of BABA, we think the street has more color about the latest updates on Ant Group," Jefferies said in a note published Monday.