China imposes antitrust fines on 22 companies (1)

China imposes antitrust fines on 22 companies

Initiating a stringent action on Wednesday, China’s market regulated imposed fines on companies like Alibaba, Tencent and 20 others for not complying with the guidelines and laws. They were fined for not abiding by the anti-monopoly rules. There have been 22 acquisitions and mergers without following the rules. There were no approvals from the authority in advance while inking the deals.

Notably, SAMR (State Administration for Market Regulation) imposed a fine of approximately USD 77,360 (500,00 yuan) on every company for their involvement in each deal. It included the Bank of Nanjing and initiating a joint venture with Suning.Com, Alibaba capturing Guangzhou FC, and Tencent overtaking stakes in Xingin International Holding Limited.

All acquisitions and mergers were found out to be violating rules through unlawful concentrations. The business operations were out of context. However, they were not considered restricted or limited competition.

Notably, the conglomerates or companies ruled or governed by SAMR have to seek resolution from the state before concentration.

In February 2021, China issued the latest anti-trust guidelines on the nation’s economic platform. It ordered the clampdown on monopolistic approaches by companies on the country’s internet sectors.

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