China will tighten regulations in the digital sector and in particular in online payments, warned the governor of the central bank, after a turn of the screw that worries investors.
The authorities have been particularly intransigent in recent months against the digital giants and their previously tolerated practices, particularly in terms of personal data, competition and user rights.
“We will continue to work to fight against monopolies [dans la finance en ligne], discrimination through algorithms and other forms of anti-competitive practices, ”China central bank official Yi Gang told a conference on the regulation of digital giants on Thursday.
Tools widely used by the behemoths in the sector to ensure their success, algorithms are at the heart of the digital economy and serve as the brains of many applications and services on the internet.
They make it possible in particular to analyze the quantities of information collected on a user and to make automatic recommendations to him according to his habits or preferences.
Beijing, which is worried about the lack of transparency of the tech giants vis-à-vis this practice, wants to toughen regulations.
“Large groups [du numérique] have collected massive data from users ”, noted Mr. Yi, expressing fears of a“ monopoly ”situation which“ undermines innovation ”in the sector and risks for the financial system.
The head of the central bank also pleaded for all companies offering financial services to obtain a license.
” Some companies [du numérique] carry out activities in finance without authorization, ”he noted.
Ant Group, an Alibaba subsidiary that owns the Alipay payment system, was the first to find itself in the sights of regulators last year.
Alipay is an essential application in China, where cash has almost disappeared and the vast majority of payments are made from a smartphone.
Beijing had thus put a stop at the end of 2020 to a gigantic IPO of Ant Group in Hong Kong. And its parent company Alibaba, founded by the whimsical billionaire Jack Ma, was subsequently fined 2.3 billion euros for abuse of a dominant position.
The authorities’ takeover has since been extended to other sectors (education, entertainment, video games, real estate, etc.)
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