Alibaba and two other firms fined Chinese regulators for not reporting deals – tech2.org

Alibaba and two other firms fined Chinese regulators for not reporting deals


Signage for Alibaba Group Holding Limited covers the front portion of the New York Stock Exchange on November 11, 2015.

Brendan McDermid | Reuters

Guangzhou, China – China’s market regulator has fined Alibaba and a Tencent-backed company for not making a proper announcement to authorities about past acquisitions, another sign Beijing is taking a tough stance on the country’s tech giants .

Alibaba, Tencent-backed China Literature, and Shenzhen Hive Box Technology were each fined 500,000 yuan ($ 76,463) by the state administration for Market Regulation (SAMR).

Despite the fines being small, SAMR’s move has led to an intention from Chinese regulators to punish and regulate technology companies, many of which have become largely unaffected over the past few years, themselves in everyday life in China The major parts of are changing.

Last month, SAMR published draft rules to curb monopoly practices by Internet platforms. It is one of the most comprehensive comprehensive proposals in China for regulating large tech companies.

The SAMR issues relate to Alibaba’s move to take a controlling stake in Alibaba store department operator Intime, China Literature’s acquisition of New Classics Media and Hive Box’s acquisition of China Post Smart Logistics.

According to SAMR, none of the acquisitions are, however, restricted or eliminated competition. Instead, fines from companies are not properly crediting the paperwork required by current monopoly laws.

In a follow-up statement posted online, SAMR said the Internet “forums are not out of anti-monopoly legislation,” in a comment that continues to put China’s Internet giants on notice.

Hong Kong time at 2:09 pm, Hong Kong-listed shares of Tencent and Alibaba were down nearly 2.9%.

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