Concerned about unprecedented regulatory heat for China’s tech sector, some companies are no longer waiting for any official reprimands that may or may not be forthcoming.
Instead, eager to pre-empt authorities, they’ve decided to self-correct,” imposing restrictions on or even walking away from their own businesses.
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KE Holdings, China’s largest platform matching buyers and sellers of real estate, is one such example. This year it quietly shut down its VIP services that promised fast-turnarounds for property sellers in exchange for exclusive listings and which had featured prominently on its popular Lianjia and Beike apps, two people familiar with the matter said.
The decision to pull the plug on the VIP services was not prompted by a regulatory request but KE, which is currently the subject of an antitrust probe here, had wanted to move “proactively” and “voluntarily,” said the people who declined to be identified as KE has not publicized its actions.
“It wasn’t a big business but it had the potential to become one,” said one of the sources.
KE said in a statement to Reuters that any business adjustments on its part “were in compliance with government regulations and aimed at providing better services.”
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