Due to the large size and having many resources,these digital giants have started to be questioned by many scholars and economists.The ongoing debate started by questioning US giants and should the antitrust be enforced on them.Since they possess many resources and large size,they tend toward monopolization of the market and stifling innovation.The lawyers,economists,sociologists started to question should these giants be regulated and how? In the scholar base and academic study,the more important question would be what the consequences from being such a big company are? Since the Chinese digital giants are now major players in the global market,soon or later they will also be questioned for their size and market power.This topic is of great importance,as it is answering should specifically Chinese digital giants be regulated or not,and what are their consequences of Chinese giants from being large in size.Therefore,our research aim is to see what are the consequences to the market from these digital companies?This paper contains and is based on three literature review topics.The literature on antitrust,literature on platform economy,and literature on antitrust against digital giants.One of the relevant theories is how the mergers affect innovation in a high innovative industry.However,by the large size of the digital giants and their presence on multiple markets,this theory is not applicable to these companies.The number of patents is constantly growing due to R&D or M&A where is proved in the later section.The second theory most valuable for this research is from Mark de Reuver,Carsten S?rensen,and Rahul C.Basole,“The Digital Platform: A Research Agenda”,where paper indicates that every research on the digital platform should be examined in multiple architectural levels.Lastly,the literature review on antitrust against digital giants has a huge hole in the academic papers.Thus,this paper is filling the gap in the literature review,firstly by filling a gap in the literature review on antitrust against digital giants and secondly literature review on Chinese companies and Chinese digital giants.The research started by quickly summarizing the current market situation and Chinese market growth.From the global picture of the digital market to specific characteristics of the Chinese digital market and how it became so developed.The main differences between the Chinese market and the US,and who are the main contributors to the market.Since Baidu,Alibaba,and Tencent are one of the main contributors to the current situation of the Chinese market,the research is narrowed on these three companies.Baidu Alibaba and Tencent were the pioneers in the Chinese digital economy and leaders in the industry that are competing on a global level.Thus,this gives us the perfect opportunity to narrow our research and explore,do Chinese digital giants stifle innovation?In order to answer our research question: “By being large in scale and rich in resources,do Chinese digital giants stifle innovation?”.Paper inspected their influence on multiple levels and used both methodologies for the research,quantitative and qualitative.In the quantitative methodology,we used secondary data and measured the BAT’s financial and innovation performance.We measure their R&D,the number of patents,M&A,and their investments and funds toward other companies.We compared acquisitions with R&D and the number of patents to see is their any positive or negative influence on internal R&D and patents by having more acquisitions.R&D was also measured independently to see their regular pace and average investing in internal R&D.When it comes to qualitative methodology,we made structured interviews with scholars who are experts in technology,the tech industry,business economics,innovation,and other related industry.The interviews were systematically structured and were compound from 13.questions in total,9.general questions,and 4.specific questions.A total of 4 interviews have been done with scholars.The interview was followed by the structure but has also allowed discussion in order to gain more insight into these giants.Nonetheless,almost all questions have been answered.Together with interviews,the survey was also launched.Survey had 14 questions mostly based on Likert scale answering,where respondents have to choose from most unlikely to most likely choice.The survey is designed to be short in order to gather as many possible respondents and to allow users to spend more time on each question.Therefore,we have a precise survey of more than 300 respondents.Before the main results of data and financial performance,in the paper is shortly showcased innovation and development in China.Where we quickly show successful growth of China’s innovation by patent filing and venture capital investment,and how from top 50 start-ups,half are raised by BAT,from investing,supporting,to directly founding.It is also important that most of the new tech companies are BAT’s ex-employees as well.In the data and financial performance,we measured how patents and internal R&D are influenced by acquisitions.However,it turned out that the BAT’s number of patents is not influenced by acquisitions as patents are constantly growing.Probably due to their presence in multiple markets,they constantly have to acquire and innovate.Despite that,we find out that the patents are dependent variables while acquisitions and investing in R&D are the independent variables.Which means depending on the company’s strategy,the patents will rise.If the giant invests in M&A,it will influence the growth of patents but decrease investments in internal R&D,on the opposite,if they invest in internal R&D,it will tend to increase the number of patents but decrease M&A.Later from the scholar’s interviews,we found that both strategies are equally important for big digital companies.The next comparison of their financial performance is their R&D.From the secondary data,BAT are constantly investing in their R&D on average of 11% from revenue,this is a high pace as the average in the tech industry is around 15%.Lastly,the paper proved that BAT companies are investing in other companies for 15 times more than Facebook,Amazon,Netflix,and Google together.They spent 32 billion on average more than US companies.This fact clearly shows us how much these companies are contributing to the Chinese economy with their investments.From the interview with scholars,we find out that these giants are very innovative and have a good innovation process.They agreed that these giants are contributing a lot to the Chinese economy,and they also emphasize how these giants are massively investing in smaller companies.We already proved this in secondary data analysis,where we find their opinion corrected with data.Scholars also mention how these companies are helping other smaller companies in many ways,by providing their platforms and services to being an example as a leader in the global market.For the antitrust concerns,in their opinion,as long as these companies are performing well,compete on a global market and have competition,the antitrust shouldn’t be enforced or at least shouldn’t be strict.If there is no competitor,then the antitrust should be enforced.In their opinion,the antitrust should be balanced not to divide and ruin the competitive advantage of big companies but at the same time not to remove or decrease incentives for smaller companies,stimulating both sides.In the survey,respondents strongly agreed on how these digital giants help other companies contribute to the economy and social welfare.By people’s perception,they have a strong opinion that these companies are helping small-medium size companies.Even their presence discourages new entrants since they are dominant in their industry and performing very well,all respondents express the desire to cooperate with them rather than compete,but because they have many resources and services that can help them to grow.Except for survey and interview with scholars,we also descriptively analyze the specific acquisition of Alibaba,where Alibaba gain most of the market share after the acquisition,creating less competition in the market.Even the acquisition is beneficial for both sides,for the acquirer and acquired entity,the negative side is that there is less competition in the market.This was one negative side of being big,however it is not possible to not have side effects due to a large presence.From all arguments included,it seems that Chinese digital giants have more like a mentor,collaborative attitude toward others than US companies.Survey participants and scholars have a more contributing,supportive image of them since they contribute,provide their resources to smaller companies.By survey,people have more opinions about these giants as helpful collaborators rather than a dominant competitor.Having said so,and including all findings and arguments,the paper proved how these digital giants,by having many resources and being big,can actually be very contributing to the market.Additional arguments are that a lot of new tech companies CEO’s are BAT’s ex-employees.Also,we have to note that now the new digital giants appeared in the Chinese market（Bytedance,Meituan-Dianping,Net Ease）,and they are also funded by BAT.Having many resources doesn’t seem bad as Baidu,Alibaba and Tencent showed,they can use these resources to stimulate the market even more.For the antitrust matter,by analyzing the positive effects of large companies,paper agree that the antitrust should be enforced when there is no competition or when the acquisition leads to monopoly.The antitrust should be very deep examined and defined not to stifle any sides,but to stimulate them.It should be balanced in order not to ruin big companies and at the same time,not to destroy incentives and advantage of smaller companies.