The digital payments giants in China, Alipay, and WeChat Pay, might have to undergo an investigation by the State Council Information Office of China.
Recently, the central bank of China has claimed that the two digital payment firms of the country have used their dominant position to annihilate the competition in the market and therefore, demanded a probe in this case. While keeping all these things in mind, the top antitrust agency of the country is planning to follow the central bank’s request.
According to a source, for over a month, the antitrust agency is looking to into matter and accumulating all information related to Alibaba Group Holding’s subsidiary Alipay and Tencent Holding Ltd’s WeChat Pay.
A report states that presently, the Ant Group is planning a dual list in Hong Kong and Shanghai to pursue the valuation of over $200 billion, but any such kind of investigation would restrain its enthusiasm to proceed forward.
The source further has mentioned, “The antitrust committee has not made a decision about whether to proceed with an investigation and it is not clear when a decision might be made.”
However, some of the sources believe that the State Council Committee is taking the central bank’s instructions very seriously.
As per the reports, the government officials at the State Council Committee are being pressurized by the Ant Group And Tencent Holdings, to stop the probing prompted y the People’s Bank of China.
Presently, neither the antitrust agency nor Ant Groups and Tencent Holdings have commented on anything on this matter.
In today’s time, most people in China rely on this Alipay and WeChat Pay services, as it allows instant payment through a code scan only.
An analysis done by a domestic consultancy in China shows that in the last three months of the year 2019, the mobile banking market in the country recorded around 56.2 trillion worth of the transaction.
Additionally, it has been reported that out of those 56.2 trillion worth of transactions, 55 percent belonged to Alipay and 39 percent to WeChat Pay.
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