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China: Mobile is under antitrust investigation

 |  May 6, 2019

China Mobile is currently under investigation in an antitrust probe for its customized 4G handsets sales in four provinces, according to a recent filing to the Hong Kong Stock Exchange.

The State Administration for Market Regulation (SAMR), which oversees enforcement of the country’s antitrust laws and regulations is “currently conducting an investigation on whether certain sales activities in respect of sales of the customized 4G+ handsets of four of the Group’s provincial subsidiaries could be anti-competitive,” the Chinese telco said in the filing.

China Mobile, the world’s largest mobile carrier, said the sales activities under scrutiny include paying subsidies to the distributors and setting sales performance targets for the handset manufacturers.

Though the company has suspended these sales activities, it could still suffer “corresponding negative effects” should SAMR choose to take actions against it, China Mobile warned investors.

Full Content: KR Asia, HKex News

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