The antitrust regulators of China have ordered Tencent to give up its exclusive music contracts in addition to fining the company for anti-competitive behavior.
This incident comes amid the Chinese communist party’s crackdown on Chinese technological and internet giants.
The $77,141 fine by the State Administration for Market Regulation was imposed on Tencent for cited violations in the acquisition of China Music in 2016.
According to regulators, after the acquisition of the music company, Tencent became the owner of over 80% of exclusive music library resources, making it very hard for other companies to compete.
In April, another large tech company Alibaba was charged with the biggest fine to date. The company had to pay $2.8 billion dollars, which is a big sum even for such a behemoth.
The shares of Alibaba have been going down since then ending what seemed like an
Anti-monopoly enforcement against tech companies is especially active this year as giants like Alibaba and Tencent expand into various new fields such as finance and health services.