China Market Regulatory Authority imposed SAMR Alibaba Group and a Tencent-backed company were fined for failing to provide appropriate statements to the authorities about previous acquisitions.
The fines are another indication that Beijing is taking a tougher stance on the country’s major technology companies.
She warned China Internet companies said Monday that they will not tolerate monopolistic practices and prepare for more scrutiny, as they imposed fines and announced investigations into deals involving Alibaba.
SAMR said it has fined Alibaba, Tencent-backed China Literature and Hive Box of US $ 76,464 each for failing to properly report past deals to antitrust reviews.
SAMR’s move – despite the small amount of the fines – signals the intention of Chinese regulators to regulate technology companies, many of which have grown largely unhindered over the past few years and have become major parts of daily life in China.
Last month, SAMR published a draft of the rules looking to end the monopolistic practices of Internet platforms, and it was one of the most comprehensive proposals in China to regulate large technology companies.
The SAMR cases relate to Alibaba’s move to acquire the major stake in department store operator InTime, China Literature’s acquisition of New Classics Media, and Hive Box’s acquisition of China Post Smart Logistics.
However, SAMR has not restricted or canceled any of the acquisitions, because it does not eliminate competition, and the fines stem from the companies’ failure to properly file the paperwork required under the current monopoly laws.
Internet platforms are not beyond the control of antitrust law, SAMR said in a comment that continues to alert Internet giants in China.
In addition, SAMR said: It is reviewing and investigating other deals based on information that some companies have acquired a significant amount of operating strength in certain sectors, a process it expects to be lengthy and involve a large number of companies.
It is reported that this is the first time that Beijing imposed a fine on any Internet company for violating the antitrust law of 2008 by not reporting the transactions correctly.