China fines Alibaba $76,500 for monopolistic behavior
China’s State Administration for Market Regulation (SAMR) fined Alibaba $76,500 for increasing its stake in department store company Intime Retail Group to 73.79 percent in 2017 without seeking approval.
China’s market regulator also fined China Literature, an online publisher and e-book company spun off by Tencent, the world’s largest gaming company, for failing to seek approval before proceeding with its acquisition of New Classics Media.
Stock prices for Alibaba and Tencent both fell about 2.6 percent on Monday.
Alibaba acquired InTime Retail to combine e-commerce and offline retail, while China Literature hopes to expand its content offerings in acquiring New Classics Media.
SAMR is also reviewing the merger of major Chinese game streaming platforms, Huya Inc. and DouYu International Holdings.
Tencent, which owns stakes in both firms, is leading the deal and would control 67.5 percent of voting shares in the merged business.
Meanwhile, Shenzhen Hive Box, backed by Chinese courier firm SF Express, was censured for its acquisition of China Post Smart Logistics.
China has been stepping up scrutiny of monopolistic behavior by Internet companies and released draft regulations to clamp down on anti-competitive practices, such as using subsidies to squeeze out competitors and signing exclusive agreements with merchants.