Units of JD.com Inc, Meituan and Didi Chuxing were also among firms summoned to a meeting with several watchdogs including the central bank, which spelled out a raft of requirements including stricter compliance when listing abroad and curbs on information monopolies and the gathering of personal data.
China has waged a campaign to rein in its Internet titans as the government grew increasingly concerned over their growing influence over every aspect of Chinese life as well as the vast amounts of data they’ve amassed through providing services like online shopping, chatting and ride-hailing. The crackdown has already forced Ma’s Ant to scrap its initial public offering while regulators have levied a record fine against affiliate Alibaba Group Holding Ltd.
The firms were also ordered to break up their information monopoly and to conduct personal credit reporting services through licensed agencies. They should strengthen their capital structure and compliance, strictly implement regulatory requirements and step up consumer protection mechanisms, according to the statement. Baidu Inc, Trip.com Group Ltd and Lufax Holding Ltd were among others summoned to the meeting.
“Regulators will keep close communication with platforms and check on their rectification progress at an appropriate time,” the watchdog agencies said in their statement. “Those failing to rectify as requested or defying rules will face severe punishment.”