New Draft Internet Regulations: MIIT Bites Off More Than It Can Chew | China Hearsay

What kind of regulation is this? Following the battle between Tencent and 360, it seems the draft for a new regulation fostering internet civility and harmony includes the outlawing of “Offering products that are incompatible with competitors’ products without reasonable grounds or authority;”

This is the opposite of what is right, and it shows how dangerous it can be to study international best practice without really understanding it. There can be reasons for intervening with the authority of companies to whatever the hell they want, but it is not the companies who have to justify doing what they want (create incompatibility, for example). It is the obligation of a market regulator to show why intervention is justified, why forcing two companies to offer compatible products is important enough for the greater good of the economy and society that it is justified to eliminate market mechanisms.

Is this form of compulsory harmonisation justified in the case of anti-virus and online chat software? I do not know, and neither does MIIT, because they never checked with this market-oriented approach in mind.

Guys, this is the only market area in China that does not have a history of state-ownership-induced inefficiencies. There is no need to catch up with that part of history!

 

an analysis of the draft regulation can be found at China Hearsay:  New Draft Internet Regulations: MIIT Bites Off More Than It Can Chew | China Hearsay.

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