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| China imposes sanctions on Alibaba |
The China Market Regulatory Authority (SAMR) fined the Alibaba Group and a Tencent-backed company for failing to provide adequate explanations for the authorities' past acquisitions.
Another sign of the fine is that Beijing has taken a tough stance on major Chinese tech companies.
China warned internet companies on Monday that it will not tolerate monopolistic behavior and is ready to accept further scrutiny after China is fined and announced an investigation into transactions with Alibaba.
SAMR said Alibaba, the Tencent and Hive Box-backed Chinese literary company, was fined $ 76,464 each for failing to properly report the transactions as part of its antitrust review.
Despite the small fines, SAMR's actions show that Chinese regulators intend to oversee technology companies, many of which have grown unchecked in recent years and have become an important part of daily life in China.
Last month, SAMR released a draft rule to end the monopoly of internet platforms, which is one of China's most comprehensive proposals to regulate large tech companies.
The SAMR case relates to Alibaba's acquisition of significant shares in the department store InTime, the China Literature Group's acquisition of New Classics Media and the Hive Box acquisition of China Post Smart Logistics.
However, SAMR did not restrict or eliminate acquisitions as it would not eliminate competition, and the fines were a result of the company failing to properly present the documents required under the existing monopoly law.
SAMR said in its comments that internet platforms are not exempt from antitrust laws, which Chinese internet giants continue to remind.
In addition, SAMR said: It is reviewing and verifying other transactions based on information that some companies have achieved significant operating strength in certain areas. This process is expected to be lengthy and involve many companies.
This is the first time Beijing has fined an internet company for violating the 2008 antitrust law for failing to properly report transactions.