Tencent, Didi Chuxing, other internet firms slapped with fine by antitrust authorities for failing to disclose deals
- The State Administration for Market Regulation imposed a fine of US$77,243 each on Tencent, Didi and eight other internet firms
- The regulator’s action marks a stepped-up effort to keep in check misconduct in the country’s internet sector
The State Administration for Market Regulation (SAMR) imposed a fine of 500,000 yuan (US$77,243) on each of the 10 firms for breaching China’s anti-monopoly law, according to a statement from the regulator on Friday.
In the case of Didi, China’s largest ride-hailing services provider, a subsidiary failed to seek approval for establishing new joint ventures, according to SAMR.
Representatives from Tencent and Didi did not immediately respond to requests for comment on Friday.
The redlined behaviour that authorities are focused on include forcing merchants to pick one platform, abusing dominant market position, making hostile bids to acquire top players in specific market segments, misusing big data to charge unfair pricing to certain clients, turning a blind eye to inferior-quality products, leaking customer data and evading tax payments.
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Based on antitrust guidelines updated in 2018, companies must seek approval for mergers and acquisitions involving firms with annual revenue of more than 10 billion yuan globally, or 2 billion yuan in China.
Shenzhen-based Tencent’s unreported deals cited by SAMR included its acquisition of a 68 per cent stake in Chinese online car-listing platform operator Bitauto Holdings in June last year. That followed Tencent’s 2018 purchase of a 13 per cent interest in Tuhu, a Chinese car maintenance service start-up.