In the news: JD.com calls for Alibaba probe, the MIIT targets apps with privacy risks and the CFDA eases drug approvals

November 10, 2015 | BY

Katherine Jo &clp articles &

This week JD.com requested the SAIC to investigate Alibaba for pressuring vendors, internet companies like Baidu, Huawei and Sina were listed for data violations and R&D centers were allowed to seek drug approvals

China's second-largest e-commerce company JD.com Inc has formally requested an antitrust investigation into rival Alibaba Group Holding. JD.com said it had heard from vendors that Alibaba has been “forcing” them to choose to exclusively deal with one site during promotional activities. A regulation issued by the State Administration for Industry and Commerce (SAIC) that came into effect on October 1 prohibits e-commerce platforms from limiting or barring their merchants from participating in promotions on other sites. China has a relatively young legal regime for market competition. It issued the PRC Anti-unfair Competition Law in 1993 and PRC Anti-monopoly Law (AML) in 2007, and handled – rather well – its first AML-related dispute at the Supreme People's Court just last year, when Qihoo and Tencent blamed each other for enforcing a choice on users. Something similar is happening here with JD-Alibaba, though JD.com has taken the administrative route.

The Ministry of Industry and Information Technology (MIIT) has circulated a list of 21 technology companies that have allegedly produced applications with security and privacy concerns. The apps have been found to either forcefully promote undesired apps, contain security flaws or violate user privacy by collecting personal information without consent. The major companies listed include Baidu, Huawei, Sina, Netease, 360, Meizu and Suning. It's good to see the MIIT keep control as companies are battling to diversify and capture more market share by throwing more of their products at users. As China's web services continue to fight to dominate, consumer protection stands at the core of almost every new data privacy and unfair competition-related regulation and dispute.

The China Food and Drug Administration (CFDA) has launched a three-year pilot scheme to simplify approvals for new drugs in 10 regions including Beijing, Shanghai, Guangdong and Zhejiang. The trial allows R&D centers to seek approvals, which are currently restricted to drug manufacturers. The new rules make it easier for smaller, research-based firms to bring new drugs to the market, as they don't have to invest in expensive manufacturing plants. China has a notoriously complicated approval process for introducing innovative drugs to the market (the CFDA is reportedly understaffed and has a drug waiting list that runs into the hundreds). This latest simplification may spur a surge in innovation but regulators will need to intensify quality and compliance checks.

China's second-largest e-commerce company JD.com Inc has formally requested an antitrust investigation into rival Alibaba Group Holding. JD.com said it had heard from vendors that Alibaba has been “forcing” them to choose to exclusively deal with one site during promotional activities. A regulation issued by the State Administration for Industry and Commerce (SAIC) that came into effect on October 1 prohibits e-commerce platforms from limiting or barring their merchants from participating in promotions on other sites. China has a relatively young legal regime for market competition. It issued the PRC Anti-unfair Competition Law in 1993 and PRC Anti-monopoly Law (AML) in 2007, and handled – rather well – its first AML-related dispute at the Supreme People's Court just last year, when Qihoo and Tencent blamed each other for enforcing a choice on users. Something similar is happening here with JD-Alibaba, though JD.com has taken the administrative route.

The Ministry of Industry and Information Technology (MIIT) has circulated a list of 21 technology companies that have allegedly produced applications with security and privacy concerns. The apps have been found to either forcefully promote undesired apps, contain security flaws or violate user privacy by collecting personal information without consent. The major companies listed include Baidu, Huawei, Sina, Netease, 360, Meizu and Suning. It's good to see the MIIT keep control as companies are battling to diversify and capture more market share by throwing more of their products at users. As China's web services continue to fight to dominate, consumer protection stands at the core of almost every new data privacy and unfair competition-related regulation and dispute.

The China Food and Drug Administration (CFDA) has launched a three-year pilot scheme to simplify approvals for new drugs in 10 regions including Beijing, Shanghai, Guangdong and Zhejiang. The trial allows R&D centers to seek approvals, which are currently restricted to drug manufacturers. The new rules make it easier for smaller, research-based firms to bring new drugs to the market, as they don't have to invest in expensive manufacturing plants. China has a notoriously complicated approval process for introducing innovative drugs to the market (the CFDA is reportedly understaffed and has a drug waiting list that runs into the hundreds). This latest simplification may spur a surge in innovation but regulators will need to intensify quality and compliance checks.

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