Aly Song | Reuters
The State Administration for Market Regulation (SAMR) on Saturday imposed a fine of 500,000 yuan ($77,141) on the company citing violations in its acquisition of China Music in 2016.
Following that acquisition, Tencent owns more than 80% of exclusive music library resources, giving the company an advantage over its competitors as it is able to reach more exclusive deals with copyright holders, SAMR said in a statement.
The competition watchdog ordered Tencent and its affiliates to relinquish exclusive music rights within 30 days, and to end requirements for copyright holders to grant the company better treatment than to its competitors.
In response, Tencent said in a statement it will “comply with all the regulatory requirements, fulfill our social responsibilities and contribute to healthy competition in the market.”
Tencent will work with affiliates, including Tencent Music Entertainment, to make those changes and ensure full compliance, it said.
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