China's Alibaba, Tencent unit fined under anti-monopoly law

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China's market regulator on Monday said it fined Alibaba Group and a Tencent Holdings-backed company for failing to seek approval before proceeding with some acquisitions.

It also is launching a review of a merger of two online streaming platforms in the latest tightening of controls over the internet sector.

China Literature, an online publisher and e-book company spun off by Tencent, was fined the same amount for also not seeking approval for its acquisition of New Classics Media. Separately, Shenzhen Hive Box, backed by Chinese courier firm SF Express, was censured over its acquisition of China Post Smart Logistics.

The moves come amid stepped up scrutiny of monopolistic behaviour by internet companies. Last month, China released draft regulations to clamp down on anti-competitive practices in the industry, such as signing exclusive agreements with merchants and the use of subsidies to squeeze out competitors.

 

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