Unfair business
The Chinese authorities intend to impose the largest antitrust fine in the country's history on Internet platform Alibaba. This was reported by The Wall Street Journal (WSJ).
According to WSJ sources, Alibaba is to be fined more than $975 million. Qualcomm, a US chipmaker, was already fined a similar amount in China in 2015 for overcharging for licences by exploiting its dominant market position. This is currently the largest corporate fine in Chinese history.
It is worth noting that in February Beijing brought internet companies within the scope of antitrust laws. The new rules prohibit internet platforms from charging different prices for the same products and services depending on purchasing power, consumption history or the preferences of specific users. And also to force customers to opt for one online platform, which is a common practice in the market. In addition, companies are required to report to authorities any moves that could be seen as monopolistic.
For example, Chinese authorities have launched an investigation into Alibaba for unfair competition. According to regulators, the company restricted the promotion on its websites of sellers who also listed their products on other online platforms, thereby forcing customers to use only Alibaba's services. It is worth noting that this is not the first investigation into Alibaba. In December, China's State Administration for Market Regulation imposed fines on Alibaba, Tencent and SF Express for three acquisitions in what legal experts described as the country's first series of antitrust actions against technology companies.
Also, Alibaba in October last year at a conference in Shanghai, company founder Jack Ma criticised international financial regulations and compared Chinese state banks to "pawnbrokers". After the speech, Jack Ma stopped appearing in public. His absence lasted a total of three months, while in the meantime China's antitrust authorities began to increase their scrutiny of the behaviour of technology companies. This gave reason, above all in the Western press, to talk about the emergence of a conflict between Jack Ma and the Chinese authorities.
