Chinese language regulators have ordered web big Tencent to finish unique contracts with music copyright holders
BEIJING — Web big Tencent was ordered by regulators to finish unique contracts with music copyright holders, including to elevated enforcement of anti-monopoly and different guidelines as Beijing tightens management over booming on-line industries.
Tencent controls greater than 80% of “unique music library assets” following its 2016 acquisition of China Music Group, the State Administration for Market Regulation mentioned Saturday. It mentioned that offers Tencent the flexibility to get higher phrases than opponents obtain or to restrict the flexibility of rivals to enter the market.
So as to “restore market competitors,” Tencent should finish unique music copyright contracts inside 30 days, the market regulator mentioned in a press release. The corporate is barred from requiring suppliers to offer higher phrases than opponents obtain.
Tencent promised on its social media account to “rigorously abide by the choice.”
Regulators are stepping up enforcement of anti-monopoly, knowledge safety, monetary and different guidelines towards Tencent, e-commerce big Alibaba Group and different firms that dominate leisure, retail and different industries.
The enforcement has damage the inventory market worth of some firms. Shares in ride-hailing service Didi World Inc., which made its U.S. inventory market debut final month, are down 21% after regulators introduced a probe of its “community safety” and ordered the corporate to overtake dealing with of buyer knowledge.
Regulators have publicly warned main firms to not use their market dominance to maintain out new opponents.
Tencent was blocked by regulators on July 10 from combining its sport platforms Douyu and Huya on the grounds which may cut back competitors.
On Wednesday, the Chinese language web regulator reprimanded Tencent, Alibaba, microblog platform Sina Weibo and e-commerce service Xiaohongshu for permitting sexually suggestive stickers or brief movies of kids to be distributed on their companies.
AP researcher Henry Hou contributed to this report.