HONG KONG: China’s market regulator on Monday said it fined Alibaba Group and a Tencent Holdings-backed company for failing to seek approval before proceeding with some acquisitions.
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 500,000 yuan ($76,500) 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 Inc. 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 realize 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.
China’s Alibaba, Tencent unit fined under anti-monopoly law
https://arab.news/6fnv6
China’s Alibaba, Tencent unit fined under anti-monopoly law
- Moves come amid stepped up scrutiny of monopolistic behavior by Internet companies
Saudi-French cooperation to localize veterinary vaccine manufacturing
RIYADH: In the presence of sector leaders, the National Livestock and Fisheries Development Program signed a memorandum of understanding with French company Ceva under the patronage of Minister of Environment, Water and Agriculture Abdulrahman bin Abdulmohsen Al-Fadhli, who also chairs the program’s board.
The agreement aims to localize vaccine manufacturing, transfer technology and technical expertise, and expand the industrial and commercial production of veterinary vaccines across the Kingdom.
According to the MoU, the two parties will work to achieve high efficiency in mass production scale-up and establish a clear path for sustainable commercial operation that meets the needs of the local and national market, as well as strengthen the biosecurity and food security system.
The MoU also includes the development and modernization of messenger RNA vaccine technologies, along with joint research and development of a Middle East Respiratory Syndrome vaccine for camels. This involves designing, evaluating, and developing vaccines specifically tailored to combat the virus.
The agreement also covers the development of a rabies vaccine and related solutions, as well as supporting national efforts to control the disease through vaccine provision, capacity building, and the implementation of integrated prevention strategies.
The collaboration between the program and Ceva aims to meet the needs of the poultry vaccine market in the Kingdom, currently estimated at around SR750 million ($199 million).
The company will work to cover approximately 30 percent of this market with an initial investment of around SR250 million.
With continued government support for poultry projects and increased production in the sector, the market is expected to grow at a rate exceeding 10 percent annually, reaching approximately SR1.25 billion by 2030.
The addition of the world’s leading poultry vaccine manufacturer to Biotech Park highlights the program’s key role in developing new industries within the livestock and fisheries sector.
It also highlights the program’s commitment to building international partnerships with global companies, organizations, research centers, and universities to support advanced biotechnology industries and attract high-quality investments. It also seeks to create new economic sectors based on biotechnology, enhance veterinary health security, and support the sustainable economic development of the livestock sector, as well as empower national and emerging companies and provide advanced research and industrial infrastructure.
This will solidify the Kingdom’s position as a global hub for biotechnology industries and the development of national capabilities.
Ceva is the first international partner to join Biotech Park, the future veterinary biotechnology city launched by the program in Dhurma Governorate. The city is the world’s first specialized and fully integrated hub for veterinary biotechnology, serving as a benchmark for sector development and a platform supporting markets across the Kingdom, the Gulf, the Middle East, Africa and beyond.
The signing of Ceva is a significant step, given its position as the world’s leading manufacturer of poultry vaccines and medicines, and one of the most prominent international companies in the field of biotechnology.
The MoU aims to localize the veterinary vaccine industry, ensuring its compatibility with the strains of poultry diseases prevalent in Saudi Arabia. This includes the transfer of technology and technical expertise from Ceva, along with the implementation of specialized training programs to guarantee that manufacturing facilities comply with international Good Manufacturing Practice standards.
