China's market regulator announced on Sunday that it has fined internet behemoths Tencent and Alibaba as well as a number of other companies for breaking anti-monopoly regulations regarding the transparency of transactions (Jul 10).
Alibaba's businesses are comprised of China commerce, international commerce, local consumer services, Cainiao, cloud, digital media and entertainment, innovation initiatives, and others.
In addition, Ant Group, an unconsolidated related party, provides digital payment services and offers digital financial services to consumers and merchants, and other businesses on our platforms.
An ecosystem has developed around our platforms and businesses that consists of consumers, merchants, brands, retailers, third-party service providers, strategic alliance partners, and other businesses.
A list of 28 transactions that broke the rules was published by the State Administration for Market Regulation (SAMR). Five Alibaba subsidiaries were participating, including a 2021 equity purchase in its subsidiary, the streaming service Youku Tudou.
Twelve of the transactions on SAMR's list involved Tencent.
Tencent is an internet and technology company that develops innovative products and services to improve the quality of life of people around the world. Founded in 1998 with its headquarters in Shenzhen, China, Tencent's guiding principle is to use technology for good.
Tencent also publishes some of the world's most popular video games and other high-quality digital content, enriching interactive entertainment experiences for people around the globe.
Tencent also offers a range of services such as cloud computing, advertising, FinTech, and other enterprise services to support our client's digital transformation and business growth.
The company has been listed on the Stock Exchange of Hong Kong since 2004.
According to Liu Zhiqin, a senior research fellow at Renmin University of China's Chongyang Institute for Financial Studies, the danger of management errors increases with scale and market dominance. But Liu also made the point that these businesses are the subject of monitoring because of the social discontent their unfair competition practices bring about, and how they undermine market stability and harm consumer interests.
The statement claims that the typical fine is 500,000 yuan ($74,680.36). This is one of the most recent actions taken by China after the end of 2020 to combat monopolistic behaviors in the tech sector.
Liu argued that neither a company's desire for innovation nor its ability to grow in a monopolistic environment should be curtailed by anti-monopoly laws. In order to ensure that businesses may continue to thrive and preserve the momentum of innovation, he also recommended increasing the transparency of company operations and strengthening social monitoring.
Most significantly, Liu emphasized, that businesses should make sure they have enough qualified professionals to safeguard innovation, which is done to stop it from turning into a monopoly.
