China considers Tencent’s behavior as anti-competitive and wants to remove its music rights as per China’s State Administration for Market Regulation’s reporting.
On Saturday, 24th July, the Chinese government agency confirmed an amount of $77,141 which equals 500,000 yuan’s. That Tencent and its affiliated companies have to pay in order to relinquish the music rights. This was certainly a piece of shocking news as it could bring the biggest technological giant to the ground.
Moreover, the Chinese conglomerate also reported that the company has unfair conduct towards the publisher of the game. As far as of now, 80 percent of the music resources are owned by Tencent which Marketing Regulation of China claims to be unprofessional behavior as competitors cannot reach exclusive deals.
The rectification plan and deadlines
Pony’s Ma’s social media and technology giant has questioned by the Chinese government to give some companies better treatment than others in the form of advance payments. A fellow technological giant Alibaba Group Holding was fine an amount of $2.8 billion for breaking trust and violating terms. Within 10 days, a rectification plan has to be submit by these companies to the watchdog and these changes must be follow and report in the next three years. Tencent has been ask to take down its music resources rights in the next 30 days.
How did Tencent respond to this tense situation?
In response to the claim, Tencent has responded rather professionally referring. That the company will faithfully comply with all the rules and regulations. It further elaborated that it will keep in view its social responsibility and will not lead to unhealthy competition in the market.
Tencent has reported that keeping in SAMR’s orders, Tencent Music Entertainment (TME) along with Tencent. Additionally, in the coming years, it will keep reporting to SAMR of its improvements and follow-ups.
According to Hosting Tribunal: Tencent’s social media platforms have over one billion users.
One thing that has made certain by this news is that Beijing is keeping an eye on the growing influence of technology. And everything connect to Chinese life. Therefore, the financial and marketing regulations have around the corner.The closest rival of TME, NetEase has reported that SAMR’s penalty on Tencent is justified. Apparently, the Chinese governmental authorities are doing this to decrease the scrutiny in companies’ performances. Also take a step ahead to data security.
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