Tencent Music facing 'increased regulatory scrutiny'Business | 18 May 2021 11:53 am
Tencent Music Entertainment Group confirmed on Tuesday it is facing heightened scrutiny from Chinese regulators, adding it was "actively co-operating" with them and is committed to complying with all laws "including those related to anti-trust,'' Reuters reports.
This is the first time the Tencent group has publicly commented on the matter.
Reuters reported last month that Tencent Holdings, which controls music streaming company Tencent Music, was told by Chinese anti-trust regulators to pay a fine, give up exclusive music rights and sell some of its music assets. Tencent did not comment then.
The action against Tencent came amid a sweeping anti-trust clampdown by China on its internet giants.
"In recent months, we have received increased regulatory scrutiny from relevant authorities, and have been actively co-operating and communicating with the relevant regulators," Tony Yip, chief strategy officer of Tencent Music, told an earnings conference call.
Yip declined to comment further or predict the outcome of the talks with the regulators, but said "we are committed to comply with all relevant laws and regulations, including those related to anti-trust."
On Monday, Sony Music Entertainment announced digital distribution agreements with both Tencent Music and NetEase Cloud Music, ending an exclusive arrangement with Tencent Music.
News of the regulatory scrutiny has pressured Tencent group shares over the past month, with Tencent Music down more than 14 percent.