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Bloomberg
Chinese regulators are set to order Tencent Holdings Ltd. to give up exclusive rights to music labels, Reuters reported.
The company will also receive a 500,000 yuan ($77,227) fine for misreporting the acquisition of two apps, according to the report. The penalties are the result of an investigation by the State Administration of Market Regulation into affiliate Tencent Music Entertainment Group.
Reuters added it couldn’t determine whether Tencent faces any further antitrust penalties beyond the expected ruling on TME. Tencent Music’s US-traded shares fall about 3% in New York. The move comes as Beijing accelerates a campaign to curtail the growing influence of China’s powerful internet corporations over every aspect of Chinese life from online shopping to chatting and ride-hailing. That crackdown already led to a record antitrust fine against fellow giant Alibaba and is now extending into the arena of data security, with Xi Jinping’s government said to be exploring a number of models and actions to open up their information hoards.