Tencent
Courtesy: Tencent.

Chinese Anti-Trust Regulators Order Tencent Music To Give Up Exclusive Licensing Deals With Labels Within 30 Days

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(CelebrityAccess) — China’s antitrust regulator has ordered Chinese music streamer Tencent Music Entertainment to give up its exclusive music licensing deals for online music in a bid to “restore market competition.”

China’s State Administration for Market Regulation or SAMR to comply with the ruling within 30 days, according to a translation of a ruling on the regulator’s website.

According to Reuters, which first reported this story, Tencent Music is also on the hook for a fine of 500,000 yuan ($77,141).

The sanctions follow SAMR’s investigation of Tencent Music’s July 2016 acquisition of shares of China Music Group, which the SAMR maintains gave Tencent control of about 80% of exclusive music library resources, effectively limiting competition.

The blow to Tencent comes amid a crackdown on Chinese internet companies which also includes a record $2.75B fine for e-commerce site Alibaba for anti-monopoly violations, and a requirement that delivery workers be paid at least minimum wage.

Shares in Tencent fell by more than 9% on Tuesday following the news.

Read the SAMR’s order here: http://www.samr.gov.cn/xw/zj/202107/t20210724_333016.html?f=app_ios_friends

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