Watchdog Probes Tencent’s Grip on China’s Giant Music Industry

Tencent Music Entertainment Group is under investigation by China’s antitrust authority in a review that could end exclusive licensing deals it forged with the world’s biggest record labels, people familiar with the matter said.

The State Administration of Market Regulation launched the probe in January and is scrutinizing the Shenzhen-based company’s dealings with music labels including Universal Music Group, Sony Music Entertainment and Warner Music Group Corp., the people said, asking not to be identified discussing a private matter.

The three largest record labels have all sold exclusive rights to a major chunk of their music catalogs to Tencent Music, ...