As China continues to crack down on its national internet giants, Chinese antitrust regulators have ordered Tencent to give up its exclusive music licensing rights and fined the company for its anti-competitive behavior.
The State Administration for Market Regulation (SAMR) imposed a fine of 500,000 yuan (77,141 US dollars) on Saturday for the company’s violation of the acquisition of China Music in 2016. After the completion of the acquisition.
Tencent owns more than 80% of the exclusive music library SAMR said in a statement that this allows the company to enter into more exclusive agreements with copyright owners, giving it an advantage over its competitors.
The competition regulator ordered Tencent and its affiliates to relinquish their exclusive music rights within 30 days and ended the requirement that copyright owners treat the company better than competitors.
Tencent will have to report to the SAMR on its progress every year for three years, according to the statement, and the antitrust regulator will strictly supervise its implementation according to law. In response, Tencent said in a statement it will “comply with all the regulatory requirements, fulfill our social responsibilities and contribute to healthy competition in the market.”
Tencent will work with affiliates, including Tencent Music Entertainment, to make those changes and ensure full compliance, it said.
( Images Credits : wiki )
