(BLOOMBERG) - All the things that allowed China's Internet innovators to become big, powerful and hugely profitable are under threat. The implications are chilling for established players.

Draft rules detailed by China's antitrust watchdog on Tuesday are aimed at rooting out monopolistic practices among Internet companies. It is seeking feedback on a raft of regulations that would curb anti-competitive behaviour such as colluding on sharing sensitive consumer data, alliances that squeeze out smaller rivals and subsidising services at below cost to eliminate competitors.