The state market regulator fines Didi Chuxing and other internet companies, including Alibaba and Tencent, for failing to report 22 mergers and acquisitions that violate the anti-monopoly law
(AF) China’s market regulator said on Wednesday it has fined numerous internet companies – such as Didi Chuxing, Tencent and Alibaba – for failing to report earlier merger and acquisition deals for approval.
A statement on the website of the State Administration of Market Regulation (SAMR) said it had fined companies that broke the anti-monopoly law – by not seeking approval for 22 deals.
SAMR said the companies were fined 500,000 yuan for each offence.
Eight of the 22 deals involved subsidiaries of Didi. In one instance, Didi established a joint venture company with China FAW Group Corporation in 2018, without reporting the deal for an antitrust review before the new company was registered.
The ride-hailing giant Didi, which launched a big IPO on the New York Stock Exchange last week, has seen its shares plunge as regulators extended their crackdown on tech companies.
The government removed its app from app stores and launched investigations on national security grounds amid concerns about data security and the possibility of troves of users’ data falling into foreign hands.
Other platforms that were fined include Beijing Sankuai Technology, a Meituan-affiliated company, and online retailer Suning.com.
With reporting by Reuters
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