China, which tightened its antitrust regulations, fined Alibaba. Chinese regulators have fined the country’s largest internet company.
China fined Alibaba $2.75 billion
In November 2020, China proposed comprehensive antitrust regulations. In late December, the State Market Regulatory Authority canceled the public offering of Alibaba’s financial subsidiary Ant Group.
Weeks after this cancellation, it was announced that an antitrust investigation was initiated against Alibaba. SAMR, the country’s largest market regulator, said in a statement that Alibaba has been forcing Chinese sellers to sell on a single e-commerce platform since 2015, rather than allowing them to choose freely among different services. It was emphasized that Alibaba is abusing its market dominance. Sellers are said to be under pressure with Alibaba to take advantage of its large user base.
After extensive investigations, Alibaba was fined $ 2.75 billion. This penalty imposed by Alibaba corresponds to 4 percent of the company’s revenue in China in 2019. “We sincerely accept the punishment, and we will ensure that we abide by our determination,” Alibaba said in a statement. In order to serve our responsibility to society, we will operate in compliance with the law with the utmost care, continue to strengthen our compliance systems and grow through innovation. ” said.