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The regulator fined Tencent and Alibaba 500,000 yuan each for violating the anti-monopoly law

via:凤凰网     time:2022/7/10 15:01:22     readed:78

Ifeng.com Science and technology news in the morning of July 10, a number of administrative penalty decisions for illegal business concentration cases not reported according to law have been announced by the State Administration for Market Regulation today,According to the anti-monopoly law of the People's Republic of China on alibaba acquired forever group in the northern hemisphere, tencent holdings acquired Beijing international cultural and other 28 cases did not declare concentration law in accordance with the administrative punishment decision, based on the investigation and evaluation conclusion, were fined $500000 for ali, tencent investment administrative penalties.Now the administrative punishment decision book gives announcement according to law.

决定书截图

Screenshot of decision

Written decision of the State Administration for Market Regulation on administrative penalty

Punishment of state Municipal Supervision [2022] No. 29

Party: Alibaba Investment Limited

Address: Trident Chambers, P.O. Box 146, Road Town, Tortola, British Virgin Islands

According to the Anti-Monopoly Law of the People's Republic of China (hereinafter referred to as the Anti-Monopoly Law) and the Interim Provisions on The Examination of Concentration of Business Operators, Alibaba Capital (hereinafter referred to as Ali Investment) is suspected of failing to report the case of illegal concentration of business operators in accordance with the law in purchasing the equity of Youku Tudou Inc. (hereinafter referred to as Youku Tudou).

After investigation, the case constitutes the illegal implementation of business concentration without legal declaration, but does not have the effect of excluding and restricting competition. Shall be in accordance with the administrative punishment law of the People's Republic of China (hereinafter referred to as the law on administrative punishments) regulation, served on ali investment administrative punishment told book, inform the parties to make content of administrative punishment and the facts, reasons and basis, and inform the parties shall have the right of the statement, defence, the right to require a hearing. Ali Capital did not submit representations, arguments or request a hearing within the prescribed time limit. The case has now been investigated and concluded.

I. Basic information

(1) The trading party.

Acquirer: Ali Investment. It was incorporated in the British Virgin Islands in 2000 and its ultimate control is Alibaba Group Holding Limited (hereinafter referred to as Alibaba). Alibaba's main businesses include online retail platform services, retail and wholesale commerce, logistics services, cloud computing, digital media and entertainment, innovation business, etc. In 2015, the global turnover was (omitted) RMB (the same currency below), while the domestic turnover in China was (omitted).

Acquired by: Youku Tudou. It was incorporated in the Cayman Islands in 2005 and listed on the New York Stock Exchange in 2010. It mainly engages in Internet long video platform business through youku and Tudou platforms. In 2015, the turnover of both global and China was (omitted).

(2) Transaction overview.

This transaction is an equity acquisition. On November 6, 2015, Ali Investment signed a merger and Acquisition Agreement with Youku Tudou through its subsidiary Ali YK and its affiliated entities, acquiring all the equity of Youku Tudou with cash of 27.60 DOLLARS per American Depositary share (ADS). On April 5, 2016, the transaction completed the registration of change of equity.

Facts and reasons of violation

(1) This case constitutes a concentration of business operators who failed to declare in accordance with the law and violated the law.

"Anti-monopoly law" the 20th provision "business operator concentration is to point to the following situation :(1) business operator merges; (2) a business operator acquires the right of control over another business operator by acquiring equity or assets; (3) a business operator obtains control over another business operator or is able to exert decisive influence on another business operator through contract or other means ". Alibaba's acquisition of 100% equity of Youku Tudou belongs to the concentration of operators stipulated in Article 20 of the Anti-Monopoly Law.

In 2015, the global turnover of Ali Investment is (omitted), and the turnover in China is (omitted). Youku Tudou's global and Domestic turnover in China is (omitted), which meets the declaration standards stipulated in Article 3 of the Provisions of The State Council on The Declaration Standards for Concentration of Business Operators, and belongs to the situation that should be declared.

"Anti-monopoly law" 21 provisions of the "concentration of operators to The State Council provisions of the declaration standards, operators should be reported to The State Council anti-monopoly law enforcement agencies in advance, not reported shall not implement concentration". On April 5, 2016, the transaction completed the registration of the change of ownership, but did not declare before this, which violates Article 21 of the Anti-Monopoly Law and constitutes the concentration of operators who did not declare according to law.

(2) The case does not have the effect of excluding or restricting competition.

The agency evaluated the impact of Ali's acquisition of Youku Tudou shares on market competition, and the evaluation concluded that the concentration of operators would not eliminate or restrict competition.

Administrative penalty basis and decision

"Anti-monopoly Law" article 48 provides that "operators in violation of the provisions of this law to implement concentration, the Anti-monopoly law enforcement agency of The State Council shall order to stop the implementation of concentration, the disposal of shares or assets within a time limit, the transfer of business within a time limit and take other necessary measures to restore to the state before concentration, may be imposed a fine of less than 500,000 yuan". Article 49 of the Anti-monopoly Law stipulates that "the anti-monopoly law enforcement agency shall consider the nature, extent and duration of the illegal act when determining the specific amount of the fine prescribed in Article 46, 47 and 48 of this Law."

In accordance with the above provisions, based on the investigation and evaluation conclusions, the authority has decided to impose an administrative penalty of 500,000 yuan on Ali Investment.

Article 67 of the Administrative Punishment Law stipulates that "the administrative organ that makes the decision of fine shall be separated from the organ that collects the fine. Except for the fines collected on the spot in accordance with the provisions of Articles 68 and 69 of this Law, the administrative authorities making the decision on administrative penalty and their law-enforcing personnel shall not collect the fines by themselves. The party concerned shall, within 15 days from the date of receiving the written decision on administrative penalty, pay the fine at the designated bank or through the electronic payment system. The bank should accept the fine and pay it directly to the state Treasury."

The parties shall receive within 15 days from the date of the administrative penalty, together with payment code to 15 the central government non-tax revenue collection agency (, in industry, agriculture, building, pay, citic, everbright, investment promotion, post office, huaxia, peace, societe generale, the people's livelihood, gf, zheshang) at any banking outlets, online bank to pay a fine. Payment code :(omitted). In case of failure to pay the fine when due, the organ shall, in accordance with the provisions of Article 72 of the Administrative Punishment Law, impose an additional fine of 3% of the fine each day and apply to the people's court for compulsory execution.

If the party is not satisfied with the above decision on administrative penalty, it may apply for administrative reconsideration to the State Administration for Market Regulation within 60 days from the date of receiving the written decision on administrative penalty. Or, within six months from the date of receiving the written decision on administrative penalty, it may file an administrative lawsuit with the people's court according to law. During the period of administrative reconsideration or administrative litigation, the execution of this administrative penalty decision shall not be suspended.

General Administration for Market Regulation

May 13, 2022

(This piece is publicly released)

According to Ifeng.com science and technology, this is the second time this year Tencent, Ali did not declare the illegal implementation of business concentration case was punished.On January 5 this year, the State Administration for Market Regulation announced 13 penalties for failing to report illegal business concentration cases, including Tencent, Ali, bilibili and other companies. Tencent had 9 cases, Ali-related 2 cases, bilibili and JINGdong 1 case each. Companies involved in related cases were fined 500,000 yuan each.

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