 |
| Alibaba had come under fire in the past from rivals and sellers for allegedly forbidding its merchants from listing on other e-commerce platforms.(File photo by=REUTERS/Thomas Peter) |
[Asia News Communication = Reporter Reakkana] Chinese regulators have fined Alibaba Group Holding 18 billion yuan (US$2.75 billion) for violating anti-monopoly rules and abusing its dominant market position, marking the highest ever antitrust fine to be imposed in the country, AFP reported.
The penalty, equivalent to around 4 percent of Alibaba's revenues in 2019, comes amid an unprecedented regulatory crackdown on the home-grown technology conglomerates in the last few months that have weighed on company shares. Alibaba's billionaire founder Jack Ma's business empire has been particularly put under intense scrutiny after his stinging criticism of China's regulatory system in late October.
In late December, China's State Administration for Market Regulation (SAMR) announced it launched an antitrust probe into the company. That came after authorities halted a planned US$37 billion IPO from Ant Group, Alibaba's Internet finance arm.
SAMR said on Saturday that after an investigation launched in December, it had determined that Alibaba had been "abusing market dominance" since 2015 by preventing its merchants from using other online e-commerce platforms. Alibaba said in a statement posted on its official Weibo account that it "accepted" the decision and would resolutely implement SAMR's rulings. It said it would also work to improve corporate compliance. The Chinese e-commerce giant said it will hold a conference call on Monday to discuss the penalty decision.
