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

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

Tencent effectively controls over 80 percent of exclusively held music streaming rights in the Chinese market.

Photo Credit: Reuters

Tencent acquired a majority stake in rival China Music Group in 2016

HIGHLIGHTS

• Tencent has been ordered to relinquish its exclusive music label rights
• SAMR slapped a fine of CNY 500,000 on Tencent's music arm
• Chinese tech giants are now facing increased scrutiny

Chinese tech giant Tencent must relinquish its exclusive music label rights, the market regulator said Saturday, after finding that the firm had violated antitrust laws.

The ruling is the latest in a crackdown on China's tech sector after years of runaway growth, as Beijing frets over the companies' growing influence as well as the security of troves of sensitive consumer data.

Tencent acquired a majority stake in rival China Music Group in 2016, effectively controlling more than 80 percent of exclusively held music streaming rights in the domestic market, the State Administration for Market Regulation said in a statement.