China’s market regulator has fined Alibaba, Tencent Holdings and Bilibili Inc. for failing to properly report several deals.
As Reuters reported Tuesday (Jan. 4), the State Administration for Market Regulation (SAMR) penalized the companies 500,000 yuan ($78,692) for each of the dozen or so deals. That number is the maximum fine under China’s anti-monopoly law.
The Reuters report notes that the SAMR in November had fined 43 companies for failing to report deals.
These fines come as China continues a regulatory crackdown on several of its industries, most notably Big Tech firms.
Last month, news broke that regulators were compiling a blacklist — overseen by China’s state planner, commerce ministry, securities regulator and central bank — of new companies that use variable interest entities (VIEs) to operate their businesses.
Read more: China Drafting Big Tech Blacklist to Curb Foreign Investments
This list was aimed at controlling the central channel startups used to attract global investors and to list on foreign markets, and is intended to curb the contribution of international stakeholders in the next generation of Chinese tech companies.
These changes were not expected to impact companies already in operation. Used for several years by companies like Tencent and Alibaba, VIEs are a legal framework that skirts limitations on foreign investment, allowing startups to take in billions from global investors.
SAMR has also said it wants to ramp up its efforts against monopolistic practices.
Learn more: Chinese Watchdogs Tighten Tech Grip With New SAMR Rules
And in August, the SAMR imposed new draft rules that give the state more control over how technology platforms conduct business. These new regulations prohibit unfair competition and control how a company can use customer data.
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