Alibaba group received a fine of approximately US $ 2.75 billion (R $ 71.90 billion, in the conversion of the day) for anti-competitive practices. According to China’s regulatory authority, SAMR (State Administration for Market Regulation), which investigated the case, the group has “abused its dominant position in the market” since 2015, preventing traders from using other online sales platforms.
This practice is a clear violation of the country’s antitrust policy, as it impedes the free movement of goods and negatively affects the interests of traders. As a result, the group was subject to the highest penalty of its kind ever recorded. But it doesn’t stop there: in addition to the payment, Alibaba will still have to make “complete rectifications” to strengthen internal compliance and protect consumer rights.
According to the Reuters news agency, the fine represents 4% of Alibaba’s revenue in 2019. Investigations began in December last year and, after a record fine, Alibaba will still be subject to an internal adjustment to trade rules, which could significantly reduce the breadth of your business.
It is worth remembering that the company was targeted by regulatory agencies after its founder, Jack Ma, publicly criticized the country’s regulatory system in October last year. A month after the incident, Chinese officials denied an initial public offering of $ 37 billion ($ 208.73 billion) that would go to Ant Group, the group’s Internet financial arm.
Although the fine may be related to Jack Ma’s statements, the penalty also denounces that China is increasingly intolerant of anti-competitive practices in its territory.