- China’s antitrust regulator has fined several Internet companies including companies owned by Tencent and Alibaba for failing to disclose earlier merger and acquisition transactions for approval, according to the regulator’s website.
- In 22 cases, Chinese companies were fined 500,000 yuan ($75,000 each) for actions including purchasing stakes in other companies that may increase their market power, according to an AP report, which cited China’s State Administration for Market Regulation or SAMR.
- The pressure on techs from China comes after the country fined Alibaba a record $2.75B in April for anti-monopoly violations and comes as the country has cracked down on ride-hailing firm DiDi in recent days. In late May it was reported that KE Holdings was also being investigated in China over alleged anti-competitive behavior.
- In late April, Meituan ADRs dropped after China’s antitrust regulator started a probe into alleged POFT practices at the food delivery company in response to complaints filed against Meituan.
- DIDI fell 6.8% after plunging 20% yesterday, while Alibaba dropped 0.9% and Tencent fell 2.4%.
Author: Josh Fineman, Seeking Alpha