On December 14th, 2121, the State Administration of Market Supervision decided to impose a fine of 511,111 yuan on Ali, Yuewen and HIVE BOX respectively. Official website, Anti-monopoly Bureau of the State Administration of Market Supervision, announced the relevant penalty decision. According to the decision, in response to Alibaba Investment Co., Ltd.' s acquisition of Yintai Commercial, Reading Group, Xinli Media and Honeycomb Network's acquisition of CNPC Land, after investigation, it was found that none of the three companies involved reported the merger and acquisition involving the concentration of operators according to law.

the so-called concentration of business operators refers to "the behavior that business operators gain control over other business operators by merging assets or purchasing shares, which may have an impact on the order of the industry". According to the relevant provisions of the state, operators who meet the relevant national declaration standards must declare. The State Administration of Market Supervision pointed out that the three cases did not have the effect of excluding or restricting competition.

However, these three companies have great influence in the industry, with many investments, mergers and acquisitions, and transactions. They have professional legal teams and should be familiar with the centralized declaration system of operators, but they failed to take the initiative to declare, which has a bad influence. Therefore, according to the relevant provisions of China's anti-monopoly law, the General Administration of Market Supervision decided to give top punishment within the scope of the law.

These three cases all involved domestic Internet companies, in which the VIE framework, that is, the problem of "agreement control" price, was prevalent. VIE structure refers to an investment structure in which foreign investors control domestic operating entities through a series of agreements, and obtain economic benefits of domestic operating entities without acquiring equity of domestic operating entities. VIE framework is usually used by foreign investors to invest in operating entities in areas where foreign investment is restricted or prohibited in China. At the same time, VIE framework is also an investment framework often adopted by domestic operating entities to achieve overseas listing.

VIE framework is the operating company that is not actually controlled by equity, but is controlled by setting up offshore companies and signing agreements. Some Internet companies in China have adopted VIE architecture for the purpose of listing overseas. VIE architecture has always been in a gray area of supervision, which is also the first time that the General Administration of Market Supervision has imposed centralized administrative penalties on enterprises that design VIE architecture illegally.

At the same time, the VIE architecture is involved, and there is also the merger case of Guangzhou Huya and Wuhan Betta, which is currently under legal review. The General Administration of Market Supervision said that through the investigation of several cases, operators can more clearly understand that VIE architecture is not a reason for Internet companies to evade supervision. This is the first time that China's anti-monopoly law came into effect, and the Political Bureau of the Central Committee has clearly expressed its intention to strengthen anti-monopoly.

the Political Bureau of the Central Committee mentioned: "We should do a good job in intellectual property protection, anti-monopoly and fair competition review". Before the central government released the signal, law enforcement agencies had taken action. On November 6th, 2121, the State Administration of Markets and other three departments jointly held the "Administrative Guidance Meeting on Regulating the Online Economic Order", which brought together representatives from 27 major Internet platform enterprises, including Baidu, Tencent, Alibaba and JD.COM, and put forward nine requirements, including not abusing dominant position, excluding and restricting competition.

with the rapid development of the internet, oligopoly business has involved all aspects of life. The higher the concentration of Internet e-commerce, the Internet giant stirs wealth to flow to the monopoly market, becoming the largest middleman, and the market resources are also accelerated to concentrate on the big platform. The power of capital is increasingly apparent, thus exposing some competitive risks and hidden dangers. During this period of time, the hot community group buying, Internet giants use big data algorithms and abundant capital to compete for fresh group buying in the community.

Community group buying wars, huge subsidies, extremely low prices rob the market, and acts suspected of disrupting market operations have a great impact on the main practitioners of the vegetable market. Without strengthening supervision, it is easy to form an industry monopoly. Similarly, the Internet has easily formed an industry monopoly on film and television, entertainment, catering and other aspects. Therefore, the General Administration of Market Supervision made it clear that the Internet industry is not an anti-monopoly place.

At the beginning of Alibaba's establishment, Ma Yun's original intention was: "Let there be no hard business in the world", but after the Internet formed a monopoly, "Let there be no hard business in the world" became all the business in the world, and there was no business to do. The promulgation of the Anti-monopoly Law also sounded the alarm of the giants.

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