Chinese regulator to order Tencent Music to give up exclusive rights to music labels
China’s antitrust regulator is set to order Tencent Holdings to give up its exclusive rights to music labels in a move meant t to favour smaller rivals.
The State Administration of Market Regulation (SAMR) will also fine it 500,000 yuan ($77,150) for lapses in reporting the acquisition of apps Kuwo and Kugou, sources told Reuters on Monday.
In April, reports claimed that the regulator would fine Tencent at least 10bn yuan and that it may force the company to sell Kuwo and Kugou.
Instead, SAMR will no longer require a sale but will impose the maximum 500,000 yuan fine for not properly flagging the 2016 app purchases for antitrust review, the same sources revealed.
Despite the ruling, Tencent Music will at least be able to retain rights to music from some domestic indie acts.
The move is the latest in a government clamp-down on China's internet giants.
According to reports, on Saturday, SAMR also said it would block Tencent Holdings' plan to merge videogame streamers Huya and DouYu International Holdings on antitrust grounds.