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Tencent, Didi Chuxing, other internet firms slapped with fine by antitrust authorities for failing to disclose deals
- The State Administration for Market Regulation imposed a fine of US$77,243 each on Tencent, Didi and eight other internet firms
- The regulator’s action marks a stepped-up effort to keep in check misconduct in the country’s internet sector
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Tencent Holdings, Didi Chuxing and eight other major internet companies have each been slapped with a fine by China’s antitrust regulator for failing to report the acquisition of smaller competitors and starting new joint ventures, in a move that intensifies Beijing’s crackdown on Big Tech.
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The State Administration for Market Regulation (SAMR) imposed a fine of 500,000 yuan (US$77,243) on each of the 10 firms for breaching China’s anti-monopoly law, according to a statement from the regulator on Friday.
Tencent, which runs the world’s largest video games business by revenue and China’s biggest social media platform WeChat, was fined for not telling the government of three mergers and acquisitions deals, according to SAMR. It said those deals, however, were not found to have the effect of excluding or restricting competition.
In the case of Didi, China’s largest ride-hailing services provider, a subsidiary failed to seek approval for establishing new joint ventures, according to SAMR.
Representatives from Tencent and Didi did not immediately respond to requests for comment on Friday.
The regulator’s action marks a stepped-up effort to keep in check misconduct by the country’s major internet companies, following the record 18.2 billion yuan fine imposed on e-commerce giant Alibaba Group Holding early last month for monopolistic behaviour. Alibaba is the parent company of the South China Morning Post.
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