China's bureau for regulating monopolies has fined three leading internet companies for failing to declare past acquisitions under the country's recently drafted anti-monopoly laws.
The penalties came on the heels of increased scrutiny of China's largest technology companies and a broader wave of antitrust efforts while preventing the disorderly expansion of capital, experts said.
The State Administration for Market Regulation announced on Monday it has fined e-commerce giant Alibaba Investment, Tencent-backed e-book site China Literature and logistics player Shenzhen Hive Box Technology 500,000 yuan ($76,450) each for not seeking regulatory approval before their respective buyout deals.
The administration said in a release on its website that the decisions were made after investigations into three acquisition cases－Alibaba's purchase of Intime Retail, China Literature's purchase of all shares of New Classics Media and Hive Box's acquisition of a subsidiary of China Post.
While the acquisitions were not reported, the government said the investigations failed to establish a prospective monopoly under the law, and found no de facto elimination or restriction of competition.
In November, Beijing introduced a slew of draft rules aimed at curbing anti-competitive behavior such as forming alliances to squeeze out smaller players, plotting to share sensitive consumer data and forcing merchants to take sides among competing platforms.
