China fines tech giants over anti-monopoly violations

By: |
November 20, 2021 11:25 AM

Chinese tech giants including Alibaba Group and Tencent Holdings were fined Saturday for failing to report corporate acquisitions, adding to an anti-monopoly crackdown by the ruling Communist Party.

The moves have been prompted by the Department of Defence's global posture review. (File)The moves have been prompted by the Department of Defence's global posture review. (File)

Chinese tech giants including Alibaba Group and Tencent Holdings were fined Saturday for failing to report corporate acquisitions, adding to an anti-monopoly crackdown by the ruling Communist Party.

The companies failed to report 43 acquisitions that occurred up to eight years ago under rules on “operating concentration,” according to the State Administration for Market Regulation. Each violation carried a penalty of 500,000 yuan ($80,000), it said.
Beijing has launched anti-monopoly, data security and other crackdowns on tech companies since late 2020. The ruling party worries the companies have too much control over their industries and has warned them not to use their dominance to gouge consumers or block entry to new competitors.

Other companies fined in the latest round of penalties include online retailers JD.com Inc. and Suning Ltd. and search engine operator Baidu Inc. The acquisitions dating back to 2013 included network technology, mapping and medical technology assets.

The companies “failed to declare illegal implementation of operating concentration,” the regulator said on its website.
Alibaba, the world’s biggest e-commerce company by sales volume, was fined $2.8 billion in April for practices that regulators said suppressed competition. Meituan, a food delivery platform, was fined $534 million on Oct. 8.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Market competition, lower credit offtake push banks to pursue credit growth at lower yields
2City Union Bank to start pushing non-gold loan advances by FY22-end
3India Ratings: RBI’s new norms likely to increase NBFCs’ bad loans by one-third