<Editor's Pick> The first shot from the anti-monopoly policy: Alibaba, Tencent, and SF Express were hit

Dec 16, 2020 Tencent Alibaba Group

At a meeting of the Political Bureau of the Communist Party of China (CPC) on December 11, guidance was given to "strengthen anti-monopoly" and "prevent the disorderly expansion of capital". No one could have guessed that within a few days, the "first shot" of antitrust punishment for the giant was fired at the national regulatory level.

On December 14, the State Administration for Market Regulation issued an announcement stating that it would impose top penalties on Alibaba Investment, a subsidiary of Alibaba, China Literature, held by Tencent, and Hive Box Technology, a subsidiary of SF Express, with each company being fined 500,000 yuan. The announcement showed that three were punished for the following reasons: Alibaba invested in acquiring shares of Yintai Commercial, China Literature acquired New Classics Media, and Hive Box Technology acquired China Post Smart Delivery Technology. According to the announcement of the State Administration for Market Regulation, the three companies were punished not for actually forming a monopoly, but for "failing to file in a timely manner and causing a bad impact".

The announcement also showed that the regulatory level is investigating the merger of two major game broadcasting platforms, Douyu TV and Huya TV, led by Tencent.

Alibaba, Hive Box, and China Literature said on the same day that they had received the notice and "will actively implement it".