Chinese authorities fined Alibaba $ 2.8 billion after conducting an antitrust inquiry into alleged monopolistic practices. The state administration for market regulation launched an investigation into the “alleged monopolistic actions” of the e-commerce giant in December, particularly its policies that force merchants to sell exclusively on its platforms and prevent them from selling on competing e-commerce sites. In a release posted on the watchdog’s website, it is said that the investigation proved that the policy eliminated and restricted competition in the country, and that it hindered innovation in the online retail platform sector.
As a result, the regulator penalized the company in accordance with China’s antimonopoly law and ordered it to cease its illegal activities and pay a fine equal to 4 percent of its domestic sales in the country. As The New York Times the $ 2.8 billion fine will not jeopardize Alibaba’s finances, but it exceeds the $ 975 million fine the Chinese government imposed on Qualcomm in 2015 for violating the antimonopoly law. In a statement to NEW, Alibaba said he would accept the fine and ensure he carried out his social responsibilities better.
China watched technology giants up close last year, with lawmakers updating the antimonopoly law to add rules specifically for it. Jack Ma’s businesses in particular have apparently become a target in his home country after calling Chinese banks ‘state-owned’ for giving them unnecessary loans during a financial summit. Its managers even had to put together a task force on a daily basis to deal with regulators.
Apart from the antimonopoly investigation into Alibaba, the Shanghai Stock Exchange blocked the planned exchange for Ant Group, the financial services company it founded, in November. Before the year ended, regulators ordered the company to ‘return to its origins’ as a payment provider and close the investment, loan, insurance and wealth management services established over the years.