Chinese authorities fined Alibaba 2.8 billion dollars
Chinese authorities fined Al...
Subscribe to Newsletter

Chinese authorities fined Alibaba 2.8 billion dollars

10 April 2021
4236
2 min.
5
Chinese authorities fined Alibaba 2.8 billion dollars

Largest fine in history

The company was accused of violating antitrust laws. Alibaba's actions had a negative impact on competition in the e-commerce market, the regulator said.

China's State Market Surveillance Administration has imposed a fine of 18.22 billion yuan ($2.78 billion) on Alibaba for violating antitrust laws, according to the regulator's website.

The fine will amount to 4% of the company's 2019 sales in China, which amounted to 455.71 billion yuan ($69.67 billion at current exchange rates). Alibaba must therefore pay 18.22 billion yuan ($2.78 billion), the regulator said.

The investigation confirmed that Alibaba had pursued a policy that forced consumers to use its services "without choice", the regulator concluded. "This has had a negative impact on the competitive environment of the Chinese e-commerce market", the authority said.

In March, The Wall Street Journal reported that the fine for Alibaba could be a record. In 2015, US-based Qualcomm paid $975 million for antitrust violations, the fine considered to be the largest corporate fine ever levied.

Chinese authorities launched an antitrust investigation into Alibaba in late December. Regulators were probing the company's "compulsory exclusivity" policy, in particular Alibaba's requirement that partners not work with its competitors.

The WSJ later reported, citing sources, that Chinese authorities had decided to scale back Alibaba Group founder Jack Ma's technology and financial business empire. The newspaper's sources said regulators were focusing on the billionaire's business as part of a campaign to increase oversight of the increasingly influential technology sector.

In early November, Ant Group (a division of Alibaba) was due to go public in Hong Kong and Shanghai, which would have been the largest IPO in history: the company could have raised up to $34.4 billion. However, two days before the offering, Ant Group said it had received a message from Chinese regulators that it had been suspended "due to significant issues".

Persons1 and Companies4 in the news

Co-founder and former executive chairman of Alibaba Group
1 place
Ant Group
1 place
Alibaba Group
2 place
Qualcomm
3 place
Section:
Rating companies
Instagram
16 Mention
Tesla
14 Mention
Netflix
12 Mention
Ford Motor Company
11 Mention
JP Morgan Chase
10 Mention
Amazon
9 Mention
White House
8 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Population
8125637983
Died this year
23160141
Born this year
56978046