Shares in Tencent have fallen after China ordered the technology giant to end exclusive music licensing deals with record labels around the world. As reported by the BBC, the move is aimed at tackling the company’s dominance of online music streaming in the country.
Tencent, which controls more than 80% of China’s exclusive music streaming rights, was also fined 500,000 yuan for unfair practices in the online music market.
According to the report, Tencent and its affiliated businesses have been told that they can no longer engage in exclusive deals over music rights and must dissolve any existing agreements within 30 days. Global record labels like Universal Music, Sony Music and Warner Music have all struck deals with Tencent giving its streaming platforms access to thousands of artist music catalogues.
This is the latest in a series of actions taken by Chinese authorities against some of the country’s biggest technology companies. High ptrofile examples have included ride-hailing giant Didi, and Kuaishou, Tencent’s messaging tool QQ, Alibaba’s Taobao and Weibo, which have been summoned by the Cyberspace Administration of China (CAC).