China fines tech giants for anti-monopoly violations
Beijing has launched anti-monopoly, data security and other crackdowns on tech companies since late 2020
Chinese tech giants including Alibaba Group and Tencent Holdings were fined Nov. 20 for failing to report corporate acquisitions, adding to an anti-monopoly crackdown by the Communist Party in to be able to.
The companies failed to report 43 acquisitions that took place up to eight years ago under “operational concentration” rules, according to the State Administration for Market Regulation. Each violation is punishable by a fine of 5,00,000 yuan ($80,000), it said.
Beijing has launched anti-monopoly, data security and other crackdowns on tech companies since late 2020. The ruling party fears companies have too much control over their industries and has warned them to not use their dominance to defraud consumers or block the entry of new competitors. .
Other companies convicted in the latest round of sanctions include online retailers JD.com Inc. and Suning Ltd. and search engine operator Baidu Inc. Acquisitions dating back to 2013 included network technology, mapping and medical technology assets.
The companies “did not declare the illegal implementation of the operational concentration,” the regulator said on its website.
Alibaba, the world’s largest e-commerce company by sales volume, was fined $2.8 billion in April for practices that regulators said suppressed competition. Meituan, a food delivery platform, was fined $534 million on October 8.