China Telecom and China Unicom Face Fines due to Monopoly on Domestic Internet Market

November 9, 2011 -- According to CCTV News, the National Development and Reform Commission (NDRC) confirmed today it has officially launched an anti-monopoly investigation into China Telecom and China Unicom on their broadband internet access services. China Telecom and China Unicom may be fined up to 10 percent of their annual revenues from internet services.

The investigation is the first anti-monopoly case involving large state-owned enterprises since China implemented its first anti-monopoly law in 2008, according to the CCTV News.

China Telecom and China Unicom account together for 90 percent of the broadband internet market share in China. According to the anti-monopoly law, China Telecom and China Unicom may be fined up to 10 percent of their annual revenues from internet services, said Li Qing, deputy director of the NDRC's price supervision and anti-monopoly department.

According to the latest annual reports, China Telecom and China Unicom make revenues about CNY50 billion and CNY30 billion respectively from broadband internet services, mainly in domestic internet market. If they are finally punished due to the abuse of their monopoly position, China Telecom and China Unicom may both face fines of billions of yuan.