Tencent will also be fined half a million yuan, converted almost 66,000 euros. According to the regulator, who was investigating the takeover, it was in violation of the regulations, partly because the watchdog was not properly informed.
The acquisition created Tencent Music Entertainment Group, China’s largest music streaming service. Parent company Tencent is one of the largest technology companies in the Asian country. Also competitor Spotify has an interest in the music service.
The Chinese watchdog also wants Tencent and its subsidiaries to stop anti-competitive practices, such as making high prepayments. The companies have been given ten days to submit their improvement plans and must report on this annually to the watchdog for the next three years. Tencent says in an official statement that it meets the requirements of the watchdog.
Chinese regulators have been checking tech companies for some time. Beijing has decided to take tougher action against large corporations that have a lot of power and until recently were bound by few rules. Online retailer Alibaba previously received a billion-dollar fine for monopoly practices.
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China intervenes again at tech giant: Tencent must relinquish music rights | Financial
Source link China intervenes again at tech giant: Tencent must relinquish music rights | Financial