The China Cyberspace Authority (CAC) has drafted a new antitrust bill that would require Chinese Internet companies to seek regulatory approval before making deals and attracting investment. This is reported by Reuters news agency, citing sources.

The bill will affect all companies with more than 100 million users on its services or with an annual income of more than 10 billion yuan ($1.58 billion). In addition, companies that are included in the list of the National Development and Reform Commission of China (NDRC) will be required to ask for permission.

Reuters sources noted that the authorities have already warned some companies about the upcoming change in legislation. According to them, changes can still be made to the project.

According to the agency, the bill will further strengthen state control over large private Internet companies in China. At the same time, it is not yet clear what types of investments can fall under the law. A senior industry executive told Reuters that he fears it will also affect private rounds, including pre-IPO late financing, for example.

Bloomberg writes that ByteDance, which owns the social network TikTok, has already taken action amid news of a new bill - management plans to cut its investment arm. The company has disbanded a team of investors evaluating promising startups, and may also abandon upcoming deals.

bbabo.Net