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Chinese authorities fined the Alibaba group 18 billion yuan, equivalent to approximately US $ 2.75 billion, for allegedly violating antitrust rules and abusing its market position.
The fine imposed represents around 4% of the company’s turnover in 2019.
According to the State Administration for Market Regulation, it was found after an investigation opened last December that Alibaba Group had “abused market control” since 2015 by preventing traders from using other Internet e-commerce platforms.
According to the Chinese authorities, these practices violate the Chinese anti-monopoly law, because they obstruct the free movement of goods and damage the commercial interests of traders.
Authorities ordered Alibaba to conduct “comprehensive assessments” to establish internal compliance and protect consumers’ rights.
Alibaba said in a statement posted on “Weibo” that it “accepts” the decision imposed on it and will strictly enforce the decisions of the Market Regulation Department, and said it will work to improve the corporate compliance.
The practice of preventing traders from displaying their products on competing platforms is considered a long-standing practice, and the organization organizing the market has made it clear that this is an illegal practice.
Alibaba has come under intense scrutiny since its founder, Jack Ma, criticized China’s regulatory system last October.
In November, Chinese authorities suspended plans to list $ 37 billion for “Ant,” the tech arm of Alibaba.
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