The Chinese market regulator said on Monday that it fined companies backed by Alibaba Group and Tencent Holdings because they had not obtained approval before making some acquisitions.
It is also reviewing the merger of two online streaming media platforms with a view to tightening control over the Internet sector recently.
China’s State Administration for Market Regulation said in a statement that it increased its stake in the department store Intime Retail Group to 73.79% in 2017 due to unapproved results, and imposed 5 million yuan (about 5.6 million rupees) on Alibaba. Fine.
Tencent’s spin-off online publisher and e-book company China Literature were fined the same amount because the company has not yet sought approval for the acquisition of New Classics Media. In addition, with the support of the Chinese express company SF Express, Shenzhen Honeycomb Box has been condemned for acquiring China Post Smart Logistics.
China’s market regulators are also reviewing the merger of two major Chinese game streaming platforms-Douyu International Holdings and Huya. Tencent is the world’s largest gaming company and owns shares in both companies. The company will control the transaction and will control 67.5% of the voting shares in the combined business.
This move comes at a time when Internet companies are strengthening their censorship of monopolistic behavior. Last month, China issued draft regulations to stop anti-competitive practices in the industry, such as signing exclusive agreements with merchants and using subsidies to suppress competitors.
The regulator said in another statement: “We hope that operators will be aware that antitrust laws apply to all entities.”
“Platform companies are not included in the anti-monopoly law. Internet platform companies should strictly abide by anti-monopoly laws and regulations and maintain fair market competition.”
On Monday, the share prices of Alibaba and Tencent both fell about 2.6%.
Alibaba acquired InTime Retail to seek to combine e-commerce and offline retail, while China Literature acquired New Classics Media to expand its content services.
Neither company immediately responded to requests for comment.
Is the MacBook Air M1 the portable beast of the laptop you always wanted? We discussed it on the weekly technical podcast Orbital, you can subscribe via Apple Podcast, Google Podcast or RSS, download the episode, or click the play button below.