Many of China's top tech stocks recently tumbled after Chinese regulators drafted new antitrust rules targeting the country's top internet companies. The proposed rules target "monopolistic practices" like price discrimination, preferential treatment for online merchants who sign exclusive agreements, and the mandatory collection of user data.
China's State Administration for market Regulation (SAMR) will seek public feedback on the drafted rules until Nov. 30. The SAMR could then finalize the rules to rein in leading internet companies like Baidu (NASDAQ: BIDU) , Alibaba (NYSE: BABA) , and Tencent (OTC: TCEHY) .
Let's see why China is trying to tighten its grip on its top internet companies, and how the new rules could change the sector's competitive landscape.
For further details see:
China Gets Ready to Rein in Baidu, Alibaba, and Tencent