Alibaba and Tencent are considering moves to gradually open up their services to one another, Wall Street Journal reported, citing sources familiar with the matter.
Details: Over the years, these two Internet giants have established virtual barriers to restrict each other's entry. Now, both of them are separately working on plans to loosen those curbs, according to people familiar with the matter.
Aibaba's initial steps may include introducing Tencent's WeChat Pay into Alibaba's e-commerce markets Taobao and Tmall.
Tencent could make it easier to share Alibaba e-commerce listings on its WeChat messaging app, or allow selected Alibaba services to access WeChat users via so-called mini-programs.
This will mark a major shift in China's consumer Internet market, which is basically divided into two camps built around the two giants.
Context: China has tightened its regulations on big techs. Alibaba was hit with a record antitrust fine of 18.2 billion yuan in April for supposedly abusing its market dominance. Recently, along with other internet giants, Tencent was fined by China's top market regulator for violating anti-monopoly rules in 22 mergers and acquisitions deals they made without seeking regulatory approval in advance.