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The State Administration of Market Regulation reported, Alibaba and Tencent omitted relevant information on their concentration of merchant players

Digital companies  Alibaba  and  Tencent Holdings  have received a  fine from  the  market regulator in China . Government authorities indicated, this is due to the  lack of statements regarding the acquisition of signatures , which is considered an omission of the  country’s antitrust procedures  .

According to the  State Administration for Market Regulation (SAMR), the fines assigned correspond to a value of 500 thousand yuan, equivalent to 76 thousand 463 dollars. Same that were assigned as a  sanction on the operations of these technological giants , who omitted their reports corresponding to the  concentration of market players in their sectors . Retail  and purchase of  entertainment services  are the main sectors involved, due to the exponential growth they report.

Regarding these omissions, SAMR indicated that  Alibaba  is in the process of  expanding retail outside its usual channel , the Internet. However, the conglomerate did not promptly communicate the  new participation of its subsidiary Intime , whose operations are based in  shopping centers . For its part,  Tencent  omitted information related to the  acquisition of New Classics Media , an audiovisual production company bought through the subsidiary  China Literature .

Consequently, SAMR reported a 2.9% and 2.6% drop in   Tencent and Alibaba shares , respectively. Likewise, China Literature shares fell 4.1%,  increasing tensions between the electoral sector and investors in common with the United States , according to  Reuters .

According to an investigation carried out by the US television channel  CNBC , with statements from the Trivium consultancy  ,  Beijing faces regulatory difficulties for its technological giants . As in the United States with the Amazon company  , the  technology sector in China grows within an environment with ambiguous regulations , they reported.

SAMR specialists indicated that among their main concerns about this incident are the competitiveness and lack of transparency factors  present in technology conglomerates . These companies, considered  variable interest entities  in the market, are valued at 700 million dollars, which is why it  was decided to fine them instead of dissolving them , they reported.

The Chinese government also confirmed that the  antitrust law , formulated in January, is under  review . The proposed measures are based on the  prevention of behaviors that attract market participants ,  purchase of firms , operations with  foreign entities , and other details regarding  electronic commerce  and  retail , SAMR reported.

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