(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