and other tech giants for failing to properly report 22 past merger deals, sending tech shares tumbling Thursday.
The country’s State Administration for Market Regulation issued a fine of RMB500,000 for each late Wednesday — chump change for Big Tech behemoths but the max allowed by the local anti-trust laws for merger deal violations. The move comes amidst an unprecedented rise in government scrutiny on monopolistic practices in the tech sector whoseAlibaba was hit with accusations of irregularities for six deals, including one for its 2014 purchase of the Guangzhou F.C. soccer club. Tencent was hit with five, including deals to acquire controlling stakes in leading mobile game app creator Cheetah Mobile and fashion e-commerce social platform Mogu.
More bad news may be forthcoming for the tech and payments sector. China’s central bank on Thursday said that it will up its scrutiny and regulation of “irregularities” in the payments market, following its April order to overhaul Alipay app owner Ant Group.