Alibaba, Tencent Fined for Disclosure Violations

China’s market regulator announced Sunday that the country imposed fines on technology giants Alibaba and Tencent for failing to comply with anti-monopoly rules on disclosing transactions. 

The Chinese State Administration for Market Regulation (SAMR) released a list of 28 deals that violated rules on disclosure of transactions, including units of Alibaba, its acquisition of the Youku Tudou streaming platform, and 12 Tencent transactions. 

Liu Zhiqin, a senior researcher at the Chongyang Institute for Financial Studies of the Renmin University of China, said that the greater the scale and market share, the higher the risk of management mistakes.

However, Liu said that the unfair competition practices of the companies on SAMR’s list cause social unrest, affect the market stability, and damage consumer interests, making them the target of supervision.

The maximum potential fine under the anti-monopoly law in each case stands at 500,000 yuan ($74,688).

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