Chinese anti-trust regulators order Tencent to jettison exclusive label licensing deals in 30 days
Recently, China’s antitrust regulators issued an order that music streamer Tencent Music Entertainment must give up its exclusive music licensing deals for online music within the next thirty days in order to restore market competition.
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China’s antitrust regulator has ordered Chinese music streamer Tencent Music Entertainment to give up its exclusive music licensing deals for online music in a bid to “restore market competition.”
China’s State Administration for Market Regulation or SAMR to comply with the ruling within 30 days, according to a translation of a ruling on the regulator’s website.
According to Reuters, which first reported this story, Tencent Music is also on the hook for a fine of 500,000 yuan ($77,141).
The sanctions follow SAMR’s investigation of Tencent Music’s July 2016 acquisition of shares of China Music Group, which the SAMR maintains gave Tencent control of about 80% of exclusive music library resources, effectively limiting competition.
The blow to Tencent comes amid a crackdown on Chinese internet companies which also includes a record $2.75B fine for e-commerce site Alibaba for anti-monopoly violations, and a requirement that delivery workers be paid at least minimum wage.
Shares in Tencent fell by more than 9% on Tuesday following the news.
Read the SAMR’s order here: http://www.samr.gov.cn/xw/zj/202107/t20210724_333016.html?f=app_ios_friendsSubscribe to CelebrityAccess Here