Alibaba Group Holdings Ltd. to enter the front of the New York Stock Exchange on November 11, 2015.
Brendan McDermide | Reuters
GUANGZHOU, China – China’s market regulator has fined Alibaba and Tencent-backed companies for failing to properly declare past acquisitions to officials, in another sign Beijing is taking a tougher stance on the country’s tech giants.
Alibaba, Tencent-backed China Literature and Shenzhen Hive Boxx Technology were each fined 500,000 yuan ($ 76,463) by the State Administration for Market Regulation (SAMR).
While the fines are small, SAMR’s move signals more intent by Chinese regulators to punish and regulate technology companies, many of which have become largely unassuming over the past few years, transforming themselves into major parts of everyday life in China.
Last month, SAMRA published draft rules seeking to curb monopolistic practices through Internet platforms. It is one of China’s most comprehensive proposals for regulating large technology companies.
SAMR issues relate to Alibaba’s move to take control of department store operator operator Intime, the acquisition of China Literature’s New Classics Media, and the acquisition of China Post Smart Logistics.
Any acquisition, however, restricts or eliminates competition in accordance with SAMR. Instead, penalties are levied on companies that do not submit the required documents properly under the existing monopoly law.
In a follow-up statement posted online, SAMRA said the Internet “is not outside the platform anti-monopoly law,” it puts China’s Internet giants on notice in a comment.
At 2:09 p.m. Hong Kong time, Tencent and Alibaba’s Hong Kong listed shares were down about 2.9%.
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