The Strategist

Chinese watchdog fines Alibaba and Tencent



07/11/2022 - 09:33



Alibaba, Tencent, and other internet behemoths have all received fines from China for breaking transparency laws. Tencent and Alibaba both received fines of over $896,000 and around $349,000, respectively.



Chinwag
Chinwag
According to Reuters, China's government punished tech giants Tencent, Alibaba, and other businesses for failing to declare transactions.

A list of 28 transactions that broke the rules was provided by the State Administration for Market Regulation (SAMR). Five of them included Alibaba divisions. This involves acquiring a stake in its subsidiary, the streaming service Youku Tudou, in 2021. Twelve deals involved Tencent in some capacity.

According to Bloomberg, Tencent was fined $896,245 and Alibaba $378,675.

The agency declared that it is examining current antitrust cases more quickly and that it will completely support growth of the enterprises involved.

Beijing has been putting pressure on Chinese tech businesses for years by fining and limiting top players in the sector. Watchdogs have imposed restrictions on a number of new economy industries, including financial technology, online gaming, and e-commerce as well as online education. Numerous investors have decided not to invest in the Chinese market as a result of the "technical suppression."

source: bloomberg.com, reuters.com

 




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