It also is launching a review of a merger of two online
streaming platforms in the latest tightening of controls over the Internet
sector.
In a statement, China's State Administration for Market
Regulation said Monday that it fined Alibaba CNY 5,00,000 for increasing its
stake in department store company Intime Retail Group to 73.79 percent in 2017
without seeking approval.
China Literature, an online publisher and e-book company
spun off by Tencent, was fined the same amount for also not seeking approval
for its acquisition of New Classics Media. Separately, Shenzhen Hive Box,
backed by Chinese courier firm SF Express, was censured over its acquisition of
China Post Smart Logistics.
China's market regulator is also reviewing the merger of two
major Chinese game streaming platforms, DouYu International Holdings and Huya.
Tencent, the world's largest gaming company that owns stakes in both firms, is
leading the deal and would have controlled 67.5 percent of voting shares in the
merged business.
The moves come amid stepped up scrutiny of monopolistic
behavior by Internet companies. Last month, China released draft regulations to
clamp down on anti-competitive practices in the industry, such as signing
exclusive agreements with merchants and the use of subsidies to squeeze out
competitors.
“We hope that operators realise that the anti-monopoly law
applies to all entities,” the regulator said in a separate statement.
“Platform companies are not outside the anti-monopoly law.
Internet platform companies should strictly abide by anti-monopoly laws and
regulations and maintain fair market competition,” it said.
Stock prices for Alibaba and Tencent both fell about 2.6
percent on Monday.
Alibaba had acquired InTime Retail as it sought to combine
e-commerce and offline retail, while China Literature bought New Classics Media
to expand its content offerings.
Both companies did not immediately respond to requests for
comment.