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.