Editor: Dhirendra Tripathi
investing. com – Tencent Music (NYSE: TME) fell more than 2% on Monday. Chinese authorities hastened the investigation of the company and its parent company.
According to Reuters, the country’s antitrust regulator, Tencent Holdings (OTC: TCEHY) is preparing to give up the exclusive rights of music companies that the music publishing unit uses to compete with smaller competitors.
According to the report, the State Market Regulatory Administration (SAMR) will also impose a fine of 500,000 yuan ($77,150) for late reporting on the purchase of Kuwo and Kugou apps.
Another bet, reported by Reuters, is China’s market regulator, Tencent Holdings, Huya (NYSE: HUYA) and DouYu (NASDAQ: DOYU) will block its plans to merge video game streaming sites for antitrust reasons.
Tencent is Huya’s largest shareholder with a 37% stake, and owns more than a third of DouYu.
SAMR said that Huya and DouYu’s total market share in the video game streaming industry will exceed 70% and their merger would be anti-competitive given that Tencent has essentially over 40% market share in the online gaming operations segment.
The Chinese company said it would abide by the regulator’s decision.