China regulator fines internet giants for violation of anti-monopoly laws

Jack Ma, founder and executive chairman of China's Alibaba Group (HT_PRINT)
Jack Ma, founder and executive chairman of China's Alibaba Group (HT_PRINT)

Summary

China’s top market regulator has fined some of the country’s largest internet giants including Tencent Holdings Ltd. and Baidu Inc. over deals it said violated the country’s antimonopoly laws.


China’s State Administration for Market Regulation said Friday that it has asked 12 companies to pay a fine of 500,000 yuan ($76,995))each.

The companies that have been fined also include tutoring provider TAL Education Group, an entity controlled by delivery giant Meituan, as well as a subsidiary of ByteDance Inc., owner of the popular short-video app TikTok.

The companies had engaged in deals such as establishing joint ventures and carrying out mergers and acquisitions that amounted to illegal business consolidation, the regulator said.

Baidu, TAL, and Meituan didn’t immediately respond to requests for comment.

Tencent said it would “continue to adapt to changes in the regulatory environment, and will seek to ensure full compliance."

ByteDance said the joint venture established by its unit involved in the fined deals was never in operation, and had been canceled in January.

Beijing authorities have been seeking to rein in the country’s dominant technology companies, especially tightening their grip over the industry since late last year.

In December, China launched an antitrust investigation into e-commerce giant Alibaba, a month after the market regulator released new draft antimonopoly rules for online platforms.

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