The People’s Bank of China (PBOC) has urged the country’s main antitrust agency, China’s State Council Information Office to investigate Alipay and WeChat Pay’s market dominance in the payment services sector.
The two payments giants have a majority stake in China’s cashless payments world as reported by Reuters. China’s mobile banking sector recorded about 56.2 trillion yuan ($8 trillion) in the third quarter of 2022, and of these, Alipay was dominated by 55% while WeChat Pay led 39%.
Recognizing the economic impact of monopoly, the People’s Bank of China while rapidly tracking the development of its digital Yuan wants an equal playing field for all stakeholders. Despite the huge market share it commands, Alipay is anti-Bitcoin for banning all BTC-related transactions in October 2022.
The Same Case With The United States
The call by the PBOC on the country’s antitrust agency bears resemblance to the United States Big 4 Technology company’s antitrust opinion with the House Antitrust Subcommittee. The grilling session that took place nearly led lawmakers to accuse companies including Amazon, Apple, Facebook and Google of using anti-competitive practices to crush smaller competing firms.
While sources close to the matter say that China’s State Council Information Office has been gathering information on Alipay and Tencent for about a month, it has not decided to launch any formal investigations despite taking the PBOC’s recommendations very seriously.
Companies in both the United States and China are both driven by high technology and all have products and services that are in high demand during the coronavirus caused global pandemic. With China’s plans to dominate the world’s technology standards, a potential move to limit the dominance of Alibaba Group Holdings Alipay and Tencent Holdings WeChat will help level the playing field as a viable global technology leader.