China has stepped up measures to strengthen its anti-monopoly supervision -- a move aimed at helping the platform businesses prosper in a healthier and more sustainable way.

 

The regulatory measures by no means indicate that the country has changed its attitude toward encouraging the Internet platform economy and supporting private enterprises.

 

China's State Administration for Market Regulation, the top market regulator, announced Monday that it has launched an investigation against Internet giant Meituan for alleged monopoly conduct of implementing an "exclusive dealing agreement."

 

Meituan is not the first platform enterprise to come under the scanner against the backdrop of the country's anti-monopoly efforts. On March 12, the regulator imposed administrative penalties on 12 companies, including Internet giants Tencent and Baidu, for violating anti-monopoly law. On April 10, the regulator imposed a penalty on Alibaba Group over monopoly conduct.

 

The actions reflect that Chinese regulators are committed to ensuring fair market competition and promoting the innovative and healthy development of the sector. While the overall situation of the Internet platform economy is sound, risks and hidden dangers are accumulating alongside rapid growth. Thus, it is imperative to regulate the sector in accordance with the law and strengthen the protection of the rights of all market entities involved in the platform economy.

 

It is still not distant in history when years of lack of market and financial regulation in Wall Street finally triggered the 2008 global financial meltdown. That utterly excruciating and costly lesson needs to be a lasting reminder.

 

Strengthening antitrust supervision will help all walks of life have a unified understanding of the development of this sector, and enable the platform economy to secure faster, more stable and better development prospects.

 

As China ushers in its 14th Five-Year Plan period (2021-2025), the platform economy has been tasked with a mission to make contributions to high-quality economic development and improve the quality of life. This industry can make an impact in multiple areas such as making resource allocation more efficient nationwide, ensuring the smooth circulation of the national economy and enhancing and refining national governance.

 

China's private sector, including the Internet platform enterprises, has played a significant role in aiding epidemic control and economic recovery. When these enterprises encounter difficulties, the government will render support, and when confusion arises, guidance will be offered. This is all to ensure that the industry can prosper boldly and confidently.