Alibaba fine has fined Alibaba $ 2.8 billion after Chinese officials finished an antitrust investigation examining alleged monopoly practices.
As you may recall, the State Market Regulatory Authority launched an investigation against the “suspicious monopolistic behavior” of the e-commerce giant in December. In particular, the investigation launched into its policy of forcing merchants to sell on their platforms and preventing them from selling on competitor e-commerce websites resulted against Alibaba.
Alibaba agreed to pay the penalty
In a statement published on Watchdog’s website, it is stated that the policy implemented as a result of the research eliminates and restricts competition in the country and prevents innovation in the online retail platform industry.
As a result of the decision, the regulator fined the company according to China’s anti-monopoly law. The regulator ordered a penalty equivalent to 4 percent of domestic sales in the country, in addition to ceasing its illegal activities.
The $ 2.8 billion fine does not jeopardize Alibaba’s finances. However, it exceeds the $ 975 million penalty imposed on Qualcomm in 2015 for violating the Chinese government’s antimonopoly law.
In a statement sent to the NYT, Alibaba stated that it will accept the penalty and be confident that it will “fulfill its social responsibilities better”.
China began following the tech giants more closely last year, and lawmakers proposed an update to add specific rules to their antimonopoly law.
Recently, Jack Ma has become a target in his own country, especially after calling Chinese banks “state-owned pawn shops” for giving unnecessary loans during a financial summit. Their managers even had to create a task force to deal with regulators on a daily basis.