China's tech giants fall under regulator's pressure

BBC

16th March, 2021 01:42:43 printer

China's tech giants fall under regulator's pressure

China's tech giants are coming under increasing pressure from regulators worried about their growing influence.

By Monday, Tencent had shed more than $60bn (£42bn) from its market value as its share price slid over concerns of greater regulator scrutiny.

Media reports suggest that rival tech giant Alibaba may have to sell some of its media assets under the crackdown.

Chinese regulators have signalled a tougher approach towards tech firms.

China's State Administration for Market Regulation (SAMR) on Friday said it had fined 12 companies over 10 deals that violated anti-monopoly rules.

The companies included Tencent, Baidu, Didi Chuxing, SoftBank and a ByteDance-backed firm, the SAMR said in a statement.

Investors appear to be worried that Tencent could be the next company in the crosshairs of China's regulators, who have taken an increasing interest in how major tech companies operate.

According to state broadcaster CCTV, China's President Xi Jinping ordered regulators on Monday to step up their oversight of internet companies, crack down on monopolies and promote fair competition.

(BBC)


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