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Image Credit - Livemint[/caption]
China’s former largest company Alibaba Group is shutting down its music streaming platform Xiami Music next month. This sudden move refrains the company from dominating the entertainment industry in the country.
The organization was recently under investigation conducted by the Chinese government for alleged monopoly practices. Alibaba's music arm made an announcement that they will be stopping all the services of Xiami Music from 5th February because of some ‘operational adjustments’. The announcement was made on the company’s Weibo account on Tuesday. The music app was acquired by Alibaba Group in 2013. The company has already invested a huge sum of money to rule over the country’s online music business.
The app was not very successful at reaching its goal. Currently, it has only acquired 2 percent of China's music streaming market. As per the data of data-intelligence company of the country TalkingData, it is behind QQ Music, KuWo, KuGou Music, and NetEase Cloud Music.
In December 2020, a report from Bloomberg disclosed that Jack Ma’s Ant Group was planning to transform its financial operations into a holding company. That could help it operate like a bank. He has decided to transfer a financial license requiring units into the holding company. It was only pending approval. The move was taken as the Chinese regulators accused the company of monopolistic practices and warned him to destroy the company's businesses.
According to the same report, it has a great possibility of destroying the growth of the company’s most profitable units.
Due to the monopoly charges, China’s central bank People’s Bank summoned the executives of the Ant Group last month. They were told to change the company’s business module to resolve the monopoly matters practiced by the company. The bank ordered the organization to remain as a provider of payments services. It also threatened the group to disrupt its consumer loans and wealth management businesses.
The statement by the central bank reads that Ant Group did not have a reliable governance mechanism. The organization went against the rules and regulations of the regulatory system of the country by arbitraging. It also reveals that Ant Group misused its influences to eliminate its rivals and thus violating the rights of the consumers.
The Ant Group is ordered by the regulators to set up a financial holding company with enough capital. The organization is also told to go back to its payments origins, improve transparency around transactions, and refrain from unfair competition.
Ant Group replied that it agrees with all the regulatory requirements and increase risk management and control. It will also form a working group to make changes within the organization.
Image Credit - Livemint[/caption]China’s former largest company Alibaba Group is shutting down its music streaming platform Xiami Music next month. This sudden move refrains the company from dominating the entertainment industry in the country.
The organization was recently under investigation conducted by the Chinese government for alleged monopoly practices. Alibaba's music arm made an announcement that they will be stopping all the services of Xiami Music from 5th February because of some ‘operational adjustments’. The announcement was made on the company’s Weibo account on Tuesday. The music app was acquired by Alibaba Group in 2013. The company has already invested a huge sum of money to rule over the country’s online music business.
The app was not very successful at reaching its goal. Currently, it has only acquired 2 percent of China's music streaming market. As per the data of data-intelligence company of the country TalkingData, it is behind QQ Music, KuWo, KuGou Music, and NetEase Cloud Music.
In December 2020, a report from Bloomberg disclosed that Jack Ma’s Ant Group was planning to transform its financial operations into a holding company. That could help it operate like a bank. He has decided to transfer a financial license requiring units into the holding company. It was only pending approval. The move was taken as the Chinese regulators accused the company of monopolistic practices and warned him to destroy the company's businesses.
According to the same report, it has a great possibility of destroying the growth of the company’s most profitable units.
Due to the monopoly charges, China’s central bank People’s Bank summoned the executives of the Ant Group last month. They were told to change the company’s business module to resolve the monopoly matters practiced by the company. The bank ordered the organization to remain as a provider of payments services. It also threatened the group to disrupt its consumer loans and wealth management businesses.
The statement by the central bank reads that Ant Group did not have a reliable governance mechanism. The organization went against the rules and regulations of the regulatory system of the country by arbitraging. It also reveals that Ant Group misused its influences to eliminate its rivals and thus violating the rights of the consumers.
The Ant Group is ordered by the regulators to set up a financial holding company with enough capital. The organization is also told to go back to its payments origins, improve transparency around transactions, and refrain from unfair competition.
Ant Group replied that it agrees with all the regulatory requirements and increase risk management and control. It will also form a working group to make changes within the organization.
