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Tencent terminates exclusive music agreements after regulatory action

By FAN FEIFEI | chinadaily.com.cn | Updated: 2021-09-01 11:00
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People walk past a Tencent sign at the company headquarters in Shenzhen, Guangdong province on Aug 7, 2020. [Photo/Agencies]

Chinese tech giant Tencent Holdings Ltd has terminated all its exclusive music copyright agreements after Chinese regulators barred it from such deals last month.

Tencent said in a statement on Tuesday night it had notified the upstream copyright parties involved in such agreements, and will continue to cooperate and engage with these parties in a non-exclusive way.

Exceptional cases included cooperation periods with independent musicians not exceeding three years, and the exclusive launch period of new songs not exceeding 30 days, it added.

In July, the State Administration of Market Regulation ordered Tencent to give up its exclusive rights to music labels, and imposed a penalty of 500,000 yuan ($77,400) for the internet giant's monopolistic behavior.

The market regulator said Tencent and its affiliates must not engage in exclusive copyright agreements with upstream owners of such rights, while existing agreements must be terminated within 30 days of the regulatory notice.

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