Tencent Music antitrust probe suspended by China authorities amid licensing deal with ByteDance
- The authorities had been investigating Tencent’s licensing deals with the world’s three largest record labels
- They dropped the probe around the same time Tencent Music licensed songs to TikTok-owner ByteDance, sources say
China’s antitrust authority has suspended a probe of Tencent Music Entertainment Group’s dealings with the world’s three largest record labels, according to people familiar with the matter, lifting a cloud hanging over that country’s dominant music streaming company.
The State Administration of Market Regulation told Tencent Music and the record labels in January that it had paused the investigation, which began in January 2019, according to the people, who asked not to be identified because the government inquiry wasn’t public.
Tencent’s American depository receipts rose as high as US$13.64 following Bloomberg’s report on the move. The shares were previously down as much 3.5 per cent to US$12.98 on Wednesday in New York.
Tencent offers a range of music services, including an online library of songs and live-streaming of performances. It is not alone in the Chinese market – tech giants such as Alibaba Group and NetEase have their own platforms – but Tencent dominates the industry and often serves as the music pipeline for competitors. (Alibaba Group is the parent company of the Post.)