China fines Luxshare for antitrust filing violation in Wingtech deal

China's market regulator has fined Luxshare Precision Industry Co Ltd 900,000 yuan ($125,000) for failing to properly declare its acquisition of part of Wingtech Technology Co Ltd's business before completing the transaction, in a case Beijing said highlighted a softer "education combined with punishment" approach to antitrust enforcement.

The State Administration for Market Regulation (SAMR) said on Wednesday it had imposed the penalty after finding Luxshare illegally implemented a concentration of undertakings in violation of China's anti-monopoly law.

The regulator said Luxshare voluntarily reported the issue to authorities on Feb 17, 2025, admitting that its acquisition of certain Wingtech businesses may have violated merger filing requirements.

An investigation confirmed the transaction had been completed without legally required prior notification to regulators, SAMR said.

The regulator said the relatively small fine reflected several mitigating factors, including Luxshare's voluntary disclosure before authorities had discovered the violation, as well as the company's efforts to improve and effectively implement internal antitrust compliance systems.

SAMR urged companies to strengthen legal compliance awareness and proactively report possible violations such as unfiled merger transactions.

The regulator also encouraged businesses to cooperate with investigations, reduce potential harm and establish or improve antitrust compliance systems to avoid more severe legal consequences.

Luxshare, one of Apple's major suppliers in China, has rapidly expanded in recent years through acquisitions and manufacturing growth, becoming one of the country's largest electronics assembly and supply chain companies.