Jakarta –
Chinese government fined tech giants Ali Baba and Tencentas well as a number of other companies for violating antitrust rules on transaction transparency.
The State Administration for Market Regulation (SAMR) disclosed 28 transactions that violated the rules, and Alibaba’s business units were involved in five of those transactions, including the 2021 purchase of equity by its subsidiary Youku Tudou.
Meanwhile, Tencent was involved in 12 transactions on the SAMR list, while the rest were carried out by various other companies from various business segments.
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The value of the fine itself has not been determined, but under China’s antitrust regulations, the maximum fine in each case is around USD 74 thousand (Rp 1.1 billion).
Even so, the value of Alibaba and Tencent’s shares has been directly affected. Alibaba’s shares were down 6% while Tencent was down 3.2% as of this writing. This shows the distrust of investors, especially with the increase in new COVID-19 cases in Shanghai and various other cities in China.
“This latest sell-off was triggered by news from antitrust law enforcement. The world is still not healing properly and we will continue to see volatile stock moves,” said Justin Tang, head of Asia research at United First Partners.
The punishment for Alibaba and Tencent continues a number of strict rules applied by the previous Chinese government. This includes fines imposed on live streamers for tax evasion last February, and both were also sentenced for violating antitrust rules in November 2021.
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(asj/fay)
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