China KPPU Fines Tencent for Too Big and Too Dominant

loading…

Tencent has business octopuses in various fields and most of them are the largest. Photo: REUTERS/Tingshu Wang

CHINA – Tencent was repeatedly reprimanded and fined by the Chinese government for this: being too big. Because it is too big, Tencent is very likely to have a monopoly. And the Chinese government is trying to prevent it.

Tencent does have a lot of business lines. And in many lines of business they are successful. So that many annexed other companies, making them the largest and monopolizing certain industries.

READ ALSO: Should I Change 5G Phones in 2021?

Last weekend, the Chinese government banned Tencent Holdings Ltd from acquiring China Music Corporation. And not only banned, Tencent was also fined.

It is feared, with the acquisition of China Music Corporation that Tencent owns the exclusive copyright of various songs and makes it monopolize the market.

Recently, the Chinese government has been tougher on giant companies in China. They increase control over monopolistic practices in accordance with existing antitrust laws. Alibaba was once a victim. Fined up to $2.75 billion.

Tencent and Tencent Music Entertainment Group, the new company set up to make the acquisition, said they were subject to the government and complied with all regulatory requirements.

The State Administration Of Market Regulation (SAMR), a kind of China’s KPPU, through their official website announced that it had investigated Tencent’s activities in the music streaming platform market in China.

From that investigation, Tencent seeks to control music copyright on a large scale by acquiring China Music Corporation. After the acquisition, Tencent will hold 80 percent of the music rights owned by China Music Corporation. The impact is assessed by SAMR to be dangerous for the industry.

SAMR barred Tencent from entering into the agreement and had to cancel it within 30 days. Tencent was also fined USD 77,150 or Rp 1 billion.

Previously, on July 10, SAMR had also thwarted Tencent Holdings’ cooperation to merge the two largest video streaming services in China, Huya and DouYu, into one.

READ ALSO: The Story of Ben & Jerry’s, the Ice Cream Company That Dare to Boycott Israel

The two sites accommodate 70 percent of the video game streaming market share in China.

Tencent owns 36.9 percent of Huya and 30 percent of DouYu. Both companies are listed on the NASDAQ. The valuation of both is estimated at USD 5.3 billion. Huya is ranked 1st and DouYu is ranked 2nd most popular video game streaming platform. Again, Tencent was obedient. “We will comply with the decision, and operate in accordance with applicable law.”

(and)

– .