Newsletter on Chinese Antitrust 04.08-11.10.2024 (Pt. 2)

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Newsletter on Chinese Antitrust 04.08-11.10.2024 (Pt. 2)

Review № 16 of Chinese Antitrust News from the Experts of the BRICS Competition Centre (Pt 2)

- SAMR Bilateral Meetings at China International Forum on Fair Competition Policy
- Lecture on Antitrust Compliance in the Aviation Industry
- Lecture on Antitrust Compliance of Motor Transport Operators
- Alibaba Eliminates All Anticompetitive Violations
- Alibaba and JD.com Mutually Enhance Interoperability
- Beijing AI Standardization Research Institute Established
- China to Introduce Mandatory Labeling of AI Content
- Mercedes-Benz and ByteDance Collaborate in AI
- Chinese Universities to Launch AI Training Programs

SAMR Bilateral Meetings at China International Forum on Fair Competition Policy

From September 10 to 11, the 2024 China International Forum on Fair Competition Policy was held in Wuhan, Hubei Province. During the event, SAMR Vice Director Meng Yang met with Andrey Tsyganov, Deputy Director of the Russian Federal Antimonopoly Service. In addition, SAMR Antimonopoly Director Xu Xinjian also held bilateral talks with Alvin Koh, Executive Director of the Singapore Competition and Consumer Commission. The parties discussed the current progress of antimonopoly work, key areas of activity, and expansion of practical cooperation in the field of competition. The participants in the meetings expressed their intention to improve the working mechanism, deepen cooperation in the field of competition policy and antimonopoly enforcement, strengthen the capacity for competition regulation, jointly protect the market order of fair competition, and promote the development of economic and trade relations.

Source: SAMR

Lecture on Antitrust Compliance in the Aviation Industry

On August 20th, SAMR and the Civil Aviation Administration of China held a lecture on antitrust compliance in the aviation sector.

The lecture focused on disseminating knowledge of antitrust regulations, teaching methods for identifying and preventing antitrust risks, and raising awareness of the importance of antitrust compliance.

SAMR and the Civil Aviation Administration of China will strengthen communication and coordinate efforts to protect competition, enhance the responsibility of entities for compliance with the law, and develop the economy.

Source: SAMR

Lecture on Antitrust Compliance of Motor Transport Operators

On September 13th, SAMR held the fifth antitrust lecture on antitrust compliance in the field of mechanical transport services. SAMR called on operators to pay more attention to antitrust work, increase responsibility, improve the system of compliance with the rules and protect the legal rights of citizens. It was noted that industry associations should act as a link between the authorities and business, ensuring compliance with laws and maintaining order in the market.

Source: SAMR

Alibaba Eliminates All Anticompetitive Violations

In April 2021, SAMR issued an administrative penalty decision against Alibaba Group for anti-competitive behavior in the online retail platform service market in China and issued an administrative order. SAMR ordered the company to stop its illegal activities, conduct a comprehensive self-examination, and regularly submit reports on the measures taken for three years.

Throughout the period, the department provided Alibaba with necessary recommendations, conducted inspections, and appointed an independent examination of the effectiveness of eliminating violations.

After three years, Alibaba stopped forcing exclusive cooperation, strictly regulated the corporate governance system, improved the effectiveness of antitrust compliance, and improved the quality of service for suppliers of goods and services on its platforms.

This led to an improvement in the competitive environment in the online retail market, restored fair competition, and expanded opportunities for market development.

The department will continue to monitor the activities of Alibaba Group to continuously improve the quality of its economic activities and enhance the company's international competitiveness.

Source: SAMR

Alibaba and JD.com Mutually Enhance Interoperability

Since mid-October, JD.com's logistics services have become available on Alibaba's Taobao and Tmall platforms. In turn, JD.com is integrating parcel delivery and storage services from Alibaba's Cainiao logistics company. JD.com has also added the Alipay wallet payment method to the platform. In order to combat anti-competitive practices, Chinese regulators called for the removal of barriers between major platforms back in 2021. At that time, companies began to abandon the concept of closed ecosystems, correctly displaying links from other platforms and allowing users to pay through third-party services.

Source: Yicaiglobal

Beijing AI Standardization Research Institute Established

On August 25th, the World Robot Conference was held in Beijing, where the Beijing Artificial Intelligence Standardization Research Institute was officially opened. The institute will focus on preventing AI risks, conducting industry standardization research, and developing industrial application scenarios.

Source: Xinhuanet

China to Introduce Mandatory Labeling of AI Content

The Cyberspace Administration of China wants to make labeling of AI-generated content mandatory. The proposed rules would require all images, videos, and audio created by AI to have a watermark or sound warning. Metadata about the creator and copyright would also need to be registered. The rules would apply to companies, individual creators, online platforms, app stores, and other content distributors. However, the draft document does not establish any sanctions for violations.

Sources: Cyberspace Administration of China, Sixth Tone

Mercedes-Benz and ByteDance Collaborate in AI

Mercedes-Benz has partnered with cloud-based ByteDance to “collaborate and research” in large-scale language models, generative AI, and big data analytics. The agreement will see ByteDance’s technology integrated into Mercedes-Benz’s in-car systems in China.

The collaboration aims to improve user experience using advanced AI solutions like ChatGPT. Both companies said they intend to “make future in-car virtual assistants smarter and more aware, thanks to LLM’s intent-understanding and logical reasoning capabilities.”

At the same time, ByteDance announced an “LLM Automotive Ecosystem Alliance” with more than 20 automakers, including local companies Geely and Great Wall Motor, to expand its influence in the industry.

Source: SCMP

Chinese Universities to Launch AI Training Programs

China's Ministry of Education has formed a special advisory committee to develop educational programs on artificial intelligence. The committee includes Tsinghua University and 14 other major universities, as well as two research institutes, three leading AI companies and two publishing houses. The first undergraduate and graduate programs on the topic have already been determined. The reforms in China's higher education system are part of the "Plan 101" project, so named because of the use of the binary number system, which is key to computer science and digital technology.

Source: Yicaiglobal


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