MONOPOLY ONLINE SOFTWARE

With reference to the economy platform, platforms operators can reach hub and spoke agreements by using technological means, platform rules, data, and algorithms, with the effect of excluding or restricting competition among the operators on the digital market. In other words, the hub coordinates the spokes thus controlling the competition among them. Generally speaking, hub-and-spoke agreements can be defined as horizontal restrictions on the supplier or retailer level (the “spokes”), which are implemented through vertically related players that serve as a common “hub” (for instance, a common manufacturer or service provider). Hub and spoke agreementsĪccording to the Guidelines, hub and spoke agreements are forbidden. The ban shall therefore curtail such behaviors and ensure fair competition in the platform economy. Indeed, in the past, some technology giants adopted monopolistic behaviors in the Chinese digital market by manipulating platforms, data, algorithms, or other technical means (such as fixing resale or minimum resale prices, or imposing differentiated prices and conditions to different customers), thus negatively impacting competition on the digital market. The introduction of a ban on monopoly agreements in the platform economy is particularly remarkable. In evaluating whether or not an anti-monopoly agreement has been concluded, the anti-monopoly law enforcement agencies will generally consider factors, such as the market power of platform operators, relevant market competition conditions, the degree of hindrance to other operators from entering the relevant market, and whether the agreement has the effect of eliminating or restricting competition.

Use technical means, platform rules, data, and algorithms to limit trading activities, exclude or restrict market competition.Use data and algorithms to, directly or indirectly, limit prices and.Using technical means to automatically set prices.Using data and algorithms to achieve coordinated behavior andĪ vertical monopoly agreement on the other hand, is reached by fixing resale prices and minimum resale prices through the following methods:.Use the platform to collect or exchange sensitive information, such as prices and sales.Horizontal and vertical monopoly agreementsĪccording to the Guidelines, horizontal monopoly agreements are reached by fixing prices, segmenting the market, restricting production (sales), restricting new technologies (products), and boycotting transactions through the following methods: The Guidelines prohibit ‘monopoly agreements’ and define them as those agreements, decisions (either written or oral), or other concerted actions taken by platform operators and operators to exclude or restrict competition. The Guidelines expressly refer to the Anti-Monopoly Law (“AML”), currently under revision, and set principles and rules to discipline the online market, in compliance with the provisions already stated under the AML. How do the guidelines seek to discipline the online market? SAMR had sought reviews and feedback from the public to the draft until November 30. In this context, on November 10, 2020, China’s State Administration for Market Regulation (“SAMR”) issued the draft of the Guidelines for Anti-monopoly in the Platform Economy (“Guidelines”) in order to prevent and stop monopolistic behavior in the platform economy, guide operators to operate in compliance with laws and regulations, and promote the sustainable and healthy development of the online economy. To address such issues, the Chinese government is starting to regulate the digital market, by increasing scrutiny and penalties and keeping in mind the peculiarities of the evolving and expanding platform enterprises. However, the rapid growth and the economic power gained by these internet giants have generated concerns over the negative effects that they might have on the market – such as monopolies and unfair competition, infringement, and other issues. Indeed, the platform economy, especially in the realm of e-commerce and digital payments industries, is experiencing an explosive expansion Alibaba, Tencent, and Ant Financial rank as the top three of the super-large platform enterprises in China. Here digital platforms play a key role and have resulted in the evolution of a platform economy – a digitally based economy where activities are facilitated by online platforms, backed by the fast-expanding Internet sector.

MONOPOLY ONLINE SOFTWARE

Many of these changes come under what is commonly referred to as the fourth industry revolution, where the application of internet and software facilitates every aspect of work and daily life. Since launching its high-tech revolution under the Made in China 2025 Masterplan, Internet Plus, and China Standards 2035 policy initiatives, China’s economy has rapidly changed and the country is becoming a production hub for high-tech products.

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