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China Fines Big Tech For Failing To Report Deals

By  |  November 21, 2021
China

China’s market regulator on Saturday said it was fining companies including Alibaba, Baidu and JD.com for failing to declare 43 deals that date as far back as 2012 to authorities, saying that they violated anti-monopoly legislation, reported Reuters.

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    Enterprises involved in the cases would be fined 500,000 yuan ($78,000) each, it said, the maximum under China’s 2008 Anti-Monopoly Law.

    China has been tightening its grip on internet platforms, reversing a once laissez-faire approach and citing the risk of abusing market power to stifle competition, misuse of consumers’ data and violation of consumer rights.

    The earliest deal listed was a 2012 acquisition involving Baidu and a partner, and the most recent was the 2021 agreement between Baidu and Chinese automaker Zhejiang Geely Holdings to create a new-energy vehicle company.

    Other deals cited by the State Administration of Market Supervision included Alibaba’s 2014 acquisition of Chinese digital mapping and navigation firm AutoNavi and its 2018 purchase of a 44% stake in Ele.me to become the food delivery service’s largest shareholder.

    The deals, however, did not have the effect of eliminating or restricting competition, the regulator said.

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