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| Tencent was blocked by regulators on Jul 10 from combining its game platforms Douyu and Huya on the grounds that might reduce competition. (File photo by= AP) |
[Asia News = Reporter Reakkana] BEIJING: Regulators ordered Internet giant Tencent to end exclusive contracts with music copyright holders, adding to increased enforcement of anti-monopoly and other rules as Beijing tightens control over booming online industries, AP reported.
After its 2016 acquisition of China Music Group, Tencent controls more than 80 percent of “exclusive music library resources”, the State Administration for Market Regulation said Saturday (Jul 24). It said that gives Tencent the ability to get better terms than competitors receive or to limit the ability of rivals to enter the market. Tencent Holdings, best known abroad for its WeChat messaging service, has a widespread business empire that likes games, music, and video. It’s among the world’s 10 most valuable publicly traded companies, with a stock market value of US$680 billion.
To “restore market competition", Tencent must end exclusive music copyright contracts within 30 days, the market regulator said in a statement. The company is barred from requiring providers to give better terms than competitors receive. Meanwhile, Tencent promised on its social media account to “conscientiously abide by the decision.” Regulators are stepping up enforcement of anti-monopoly, data security, financial and other rules against Tencent, e-commerce giant Alibaba Group and other companies that dominate entertainment, retail and other industries.
