The PRC's General State Administration for Market Control and Regulation has fined a number of China's largest companies, including Internet giants Alibaba and Tencent, for violating antitrust laws, the regulator said in a statement on its website.
The day before, November 19, Alibaba shares fell 11% on the Hong Kong Stock Exchange. This was the most significant decline in the company's share price since its listing on this exchange in November 2019. The record drop in shares was triggered by the publication of Alibaba's third-quarter earnings, for which the company's net income fell 87% to $ 524 million.
In total, the regulator recently initiated and investigated 43 cases of violation of antimonopoly laws, mainly related to previously carried out transactions, mergers and acquisitions, which the companies did not report to the authorities.
Based on the results of the audit, the department, in accordance with Articles 48 and 49 of the Antimonopoly Law of the PRC, issued a decision on administrative punishment of violators, each of whom will have to pay a fine of 500 thousand yuan (78.2 thousand dollars).
The list of violating companies includes the largest Chinese Internet company Alibaba Group, the Internet giant Tencent Holdings, one of the largest retailers in China Suning, the DiDi conglomerate, which owns the taxi service of the same name, and the technology company Baidu.