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Tencent Ordered to Give Up Exclusive Music Rights in China Antitrust Crackdown

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Chinese tech large Tencent should relinquish its unique music label rights, the market regulator mentioned Saturday, after discovering that the agency had violated antitrust legal guidelines.

The ruling is the newest in a crackdown on China’s tech sector after years of runaway progress, as Beijing frets over the businesses’ rising affect in addition to the safety of troves of delicate client information.

Tencent acquired a majority stake in rival China Music Group in 2016, successfully controlling greater than 80 p.c of completely held music streaming rights in the home market, the State Administration for Market Regulation mentioned in a press release.

This gave the agency’s music arm the flexibility to urge labels to “reach more exclusive copyright agreements, or require better trading conditions compared to (Tencent’s) competitors,” the regulator mentioned, calling the case an “illegal concentration of business operators.”

Tencent’s music arm was additionally fined CNY 500,000 ($77,144 or roughly Rs. Rs. 57,41,600), SAMR mentioned.

Chinese music streaming corporations have in current years fought to snatch up unique rights to play labels’ tracks in the nation after regulators tightened guidelines in opposition to piracy.

The largest gamers in China’s tech sector — after years of progress thanks to lax regulation — at the moment are going through elevated scrutiny.

Earlier this month the monetary regulator blocked a merger between online game live-streaming websites that will have given Tencent a majority stake total, accounting for over between 80 to 90 per cent of the nation’s home market share in accordance to analysts.

Elsewhere, China’s largest ride-hailing app Didi Chuxing was banned from Chinese shops over information assortment considerations, simply days after a $4.4 billion (roughly Rs. 32,748 crores) New York IPO.

Tencent didn’t instantly reply to AFP’s request for remark.


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(THIS STORY HAS NOT BEEN EDITED BY INDIA07 TEAM AND IS AUTO-GENERATED FROM A SYNDICATED FEED.)

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