SHANGHAI/HONG KONG (April 10): China slapped a record 18 billion yuan (US$2.75 billion) fine on Alibaba Group Holding Ltd on Saturday, after an anti-monopoly probe found the e-commerce giant had abused its dominant market position for several years.
The fine, about 4% of Alibaba s 2019 domestic revenues, comes amid a crackdown on technology conglomerates and indicates China s antitrust enforcement on internet platforms has entered a new era after years of laissez-faire approach.
The Alibaba business empire has come under intense scrutiny in China since billionaire founder Jack Ma s stinging public criticism of the country s regulatory system in October.
A month later, authorities scuttled a planned US$37 billion IPO by Ant Group, Alibaba s internet finance arm, which was set to be the world s biggest ever. The State Administration for Market Regulation (SAMR) announced its antitrust probe into the company in December.
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SHANGHAI Chinese regulators have fined Alibaba Group Holding Ltd 18 billion yuan ($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.
The penalty, equivalent to around 4% 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.
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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.
China fines Alibaba record $2.75b for anti-monopoly violations
REUTERS/Aly Song
April 10, 2021
Chinese regulators have fined Alibaba Group Holding Ltd 18 billion yuan ($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.
The penalty, equivalent to around 4% of Alibaba’s 2019 revenues, comes amid an unprecedented regulatory crackdown on home-grown technology conglomerates in the past 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.
Alibaba Group Fined Record $2.75 Billion for Anti-Monopoly Violations in China
The penalty, equivalent to around 4 percent of Alibaba s 2019 revenues, is the highest ever antitrust fine to be imposed in China. By Reuters | Updated: 10 April 2021 10:24 IST
Photo Credit: Reuters
Highlights
In December, China s SAMR announced an antitrust probe into Alibaba
Alibaba has said it accepted the decision
Chinese regulators have fined Alibaba Group Holding CNY 18 billion ($2.75 billion or roughly Rs. 20,500 crores) for violating anti-monopoly rules and abusing its dominant market position, marking the highest ever antitrust fine to be imposed in the country.
The penalty, equivalent to around four percent of Alibaba s 2019 revenues, comes amid an unprecedented regulatory crackdown on home-grown technology conglomerates in the past few months that have weighed on company shares.
BBC News
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The world s biggest online retailer - China s Alibaba - has been hit with a record fine equivalent to $2.75bn (just over £2bn).
Regulators in China said the internet giant had abused its dominant market position for several years.
In a statement the company said it accepted the ruling and would ensure its compliance .
Analysts say the fine shows China intends to move against internet platforms that it thinks are too big.
While not well known outside China, inside the country Alibaba is an ever-present behemoth, the BBC s Robin Brant reports from Shanghai.
The company is China s Amazon meets eBay, our correspondent says. Retail is its main activity but its work has spread to digital payments, credit and cloud computing.