(Yicai Global) Oct. 27 -- NetEase Cloud Music, China’s second-largest music streaming platform, plans to complain to Chinese regulators about SM Entertainment, alleging monopoly behavior as the South Korean firm continues to stick to exclusive copyrights and reject open music copyright licensing.

SM Entertainment has ignored requirements issued by China’s regulators, Sina Technology reported today, citing sources. After exclusive music deals were ended in accordance with Chinese law, SM Entertainment refused to sign any with platforms to force the continuation of discriminatory licensing policy and maintain high prepayment profits in China, the report added.

China’s National Copyright Administration held talks with more than 20 domestic and foreign record labels in 2017 to promote online music licensing and mass communication, and avoid granting exclusive copyrights to online music service providers.

SM Entertainment is Asia’s No. 1 entertainment group. It represents artists such as Korean pop groups TVXQ, Girl’s Generation, and Exo. In January 2019, Tencent Music signed an exclusive deal with the firm, securing music copyrights from South Korea’s top three entertainment companies.

China’s State Administration for Market Regulation ordered Tencent in July 24 this year to end its exclusive rights with record labels within 30 days and pay a CNY500,000 (USD78,250) fine following an official investigation into Tencent’s takeover of China Music in 2016. That was the first time China took measures to restore market competition since the implementation of the Anti-Monopoly Law.

Tencent Music Entertainment Group announced on Aug. 31 that it had given up exclusive music rights, adding that record labels with whom it still had valid agreements could license the tracks to other operators.

But according to a recent report by China Youth Daily, the progress of related platforms in ending exclusive copyrights is quite limited, as two months after the deadline, only a few exclusive deals have been ended. The opening up of music copyrights still faces immense obstacles, it added.

Editor: Futura Costaglione