[Epoch Times, July 12, 2021](Epoch Times reporter Chen Ting’s comprehensive report) According to a Reuters report on Monday (July 12), two people familiar with the matter revealed that the Chinese Communist Party required Tencent to give up the exclusive streaming rights of the record company. Otherwise, it will face a fine of more than ten billion yuan.
The source said that if Tencent agrees to abandon the copyright, the fine will be reduced to 500,000 yuan as a penalty for failing to declare mergers and acquisitions of “Kugou” and “Kuwo” in accordance with regulations. This is lighter than the penalty for compulsory sales that came out earlier this year.
At the end of last year, the Chinese Communist Party’s regulators began a severe antitrust crackdown on technology giants, including imposing a record fine of 18 billion yuan on Alibaba Group.
At the end of April this year, it was reported that the State Administration of Market Supervision and Administration of the Communist Party of China was preparing to issue a huge fine against Tencent, with a fine of at least 10 billion yuan, and that it might have to be forced to sell “Kugou” and “Kuewo”. At the time, Tencent was trying to seek leniency from the authorities.
Tencent Group and the State Administration of Market Supervision did not respond to Reuters’ request for comment.
Reuters said that it is currently unable to determine whether Tencent Group will face other antitrust penalties in addition to the penalty for “Tencent Music.”
Last Saturday, the Chinese Communist Party used anti-monopoly reasons to prevent Tencent from acquiring China’s two largest game companies, Huya and Douyu.
After Tencent acquired Kuwo and Kugou in 2016, it bought the exclusive streaming rights of companies such as Universal Music, Sony Music, and Warner Music.
Later, although Tencent reselled some rights to competitors, competitors complained about unfair transactions and high prices.
Previously, the Chinese Communist Party had investigated Tencent Music on this matter in 2018, but the investigation was stopped in 2019 because Tencent Music agreed to stop renewing some of the exclusive streaming rights.
People familiar with the matter said that after the latest ruling of the State Administration of Market Regulation, Tencent Music may retain the music copyrights of some domestic independent musicians.
Editor in charge: Ye Ziwei#
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