Last Updated on 28/07/2021 by Sanskriti
The action is intended to counter the company’s dominance in the country’s online music streaming market.
For unfair tactics in the internet music industry, 500,000 yuan (£56,000; $77,120) was fined. Following a 2016 deal, Tencent now owns more than 80% of China’s exclusive music streaming assets.
The State Administration of Industry Regulation (SAMR) said on Saturday that the company’s actions in the Chinese online music market were in violation of the country’s anti-monopoly laws.
The firm and its related businesses have been informed that they may no longer enter into exclusive music rights arrangements and that any current agreements must be terminated within 30 days.
Exclusive arrangements with independent musicians can be kept because they expire after three years. Tencent and Tencent Music Entertainment, which was formed as a result of Tencent’s acquisition of China Music Corporation, have stated that they will abide by the decision and meet the regulator’s criteria.
Tencent has signed partnerships with global record companies including Universal Song, Sony Music, and Warner Music, providing its streaming platforms access to thousands of artist music archives.
Tencent Holdings’ stock was down 5.7 percent in Hong Kong, while Tencent Music Entertainment Group’s stock was down 6.9 percent.
Against some of the country’s most powerful technological firms, this is the latest in a slew of moves by Chinese authorities.