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China regulator fines Alibaba, Tencent for disclosure violations

Stock Markets Jul 10, 2022 12:55AM ET
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2/2 © Reuters. FILE PHOTO: A man walks past a logo of Alibaba Group at its office building in Beijing, China August 9, 2021. REUTERS/Tingshu Wang/File Photo 2/2
 
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SHANGHAI (Reuters) - China has imposed fines on technology giants Alibaba (NYSE:BABA) and Tencent as well as a range of other firms for failing to comply with anti-monopoly rules on the disclosure of transactions, the country's market regulator said on Sunday.

The State Admnistration for Market Regulation (SAMR) released a list of 28 deals that violated the rules. Five involved units of Alibaba, including a 2021 purchase of equity in its subsidiary, the Youku Tudou streaming platform.

Tencent was involved in 12 of the transactions on SAMR's list.

The firms could not immediately be reached for comment.

China's tech sector has been one of the main targets of a crackdown on monopolistic practices that started in late 2020.

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

($1 = 6.6945 yuan)

China regulator fines Alibaba, Tencent for disclosure violations
 

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Comments (2)
George Tromp
George Tromp Jul 10, 2022 5:01PM ET
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A drop in the bucket fine..a slap on the wrist
mark johnson
mark johnson Jul 10, 2022 3:38AM ET
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Just when we all thought the CCP was going to go a little easier on these companies and they might be investment worthy.
Well Jose
Well Jose Jul 10, 2022 3:38AM ET
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Exactly. But, I see this as a good sign actually, for the US ***** we all thought China was going to lead future innovation and increase its share in the global investment market; it however turned out that they prefer to ********innovation and their economy over power management. I think it s all good for Western; as long as we do not have to much invested in this country. But short term: a new *******Monday to come for the Chinese tech sector.
Jas Tan
Jas Tan Jul 10, 2022 3:38AM ET
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Will the fine imposed affect those company stock value?
Rainbow Bears
Rainbow_Bears Jul 10, 2022 3:38AM ET
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The fine is $70,000. Literally peanuts. It's just a warning from CCP to the tech giants who the real 'boss' is. The crackdown however has basically ended for now unless you think companies that make tens of billions a year in profit cannot stomach $70,000.
 
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