Tencent will be hit with a big antitrust penalty in China, but it’s not likely to be as much as Alibaba’s record $2.75 billion fine last month, Reuters reported, citing sources.
As part of Chinese President Xi Jinping’s antitrust crackdown, Tencent will likely get fined a minimum of $1.54 billion by the State Administration of Market Regulation (SAMR), the sources told Reuters.
One of the biggest companies in China and the largest technology conglomerate, Tencent is being penalized for not reporting its previous acquisitions and investments and for anticompetitive behavior. The fine is capped at 500,000 yuan.
“The attitude from the regulator is that, unlike Alibaba, you are not the biggest target here, but it would be impossible not to penalize Tencent now that the campaign is in action,” said one of the sources, per Reuters.
Tencent has a valuation of $776 billion compared to Alibaba’s $642 billion. SAMR hit Alibaba with a record penalty following a probe that revealed the company took advantage of having a dominant market position.