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Deepti Sri · · 1 min readSources: Chinese regulator may fine Tencent over $1.5b for antitrust violations
“China is preparing a substantial fine for Tencent Holdings as part of its sweeping antitrust clampdown on the country’s internet giants, but it is likely to be less than the record US$2.75 billion penalty imposed on Alibaba earlier this month,” Reuters reported, citing sources familiar with the matter.
Details:
- China’s State Administration of Market Regulation (SAMR) may potentially slap a fine of at least 10 billion yuan (US$1.54 billion) on Tencent for not properly reporting past acquisitions and investments for antitrust reviews.
- The regulator may also ask Tencent to give up its exclusive music rights and force the company to sell the Kuwo and Kugou music apps, which the tech giant previously acquired. However, Tencent’s core businesses, video games and WeChat, will remain intact.
Context:
- The development comes after SAMR, the Cyberspace Administration of China, and State Taxation Administration summoned 34 internet companies including Baidu, Didi Chuxing, iQiyi, Pinduoduo, and ByteDance to urge them to review Alibaba’s case and correct their anti-competition practices.
- Recently, China also began an investigation into Meituan for alleged abuses including forcing exclusivity agreements.
Editing by Collin Furtado and Jaclyn Tiu
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