Alibaba fined $ 2.8 billion for competition in China

Beijing (AP) — Alibaba Group, the world’s largest e-commerce company, has tightened control of its fast-growing tech industry by the ruling Communist Party, resulting in 18.3 billion yuan (28) from Chinese regulators for anti-competitive tactics. He was fined ($ 100 million).

The leader is concerned about the dominance of China’s largest Internet companies, including Alibaba, as the industry expands into finance, healthcare services and other delicate areas. The party says antitrust enforcement, especially in the tech industry, is a priority this year.

Alibaba The state government for market regulation has announced that it has been fined for “abusing its dominant position” to limit competition by retailers using the platform and prevent “free distribution” of goods. did. The fine is equivalent to 4% of total sales of 455,712 million yuan ($ 69.5 billion) in 2019.

The move is the founder of Alibaba and its millionaire following a November decision by regulators to suspend the stock market debut of Ant Group, a financial platform spun off from e-commerce giants. It’s a new setback for Jack Ma. Last year was probably the largest initial public offering in the world.

Ma, one of China’s wealthiest and most prominent entrepreneurs, temporarily disappeared from public after criticizing regulators in a November speech. The Ant Group was shut down a few days later, but financial experts said regulators were already concerned that Ant lacked proper financial risk management.

Launched in 1999, Alibaba operates retail, business-to-business and consumer platforms. It is growing rapidly in financial services, filmmaking and other areas.

Twelve companies, including Tencent Holdings, which operates games and the popular WeChat messaging service, were fined 500,000 ($ 77,000) each in March for failing to disclose past acquisitions or other deals.

In February, the government issued antitrust guidelines aimed at preventing anti-competitive practices such as signing exclusive contracts with merchants and using subsidies to oppress competitors.

Regulators said in December that they were considering Alibaba’s anti-competitive tactics, including a policy called “choose one of the two.”

Also in December, regulators will not use market advantage to keep Alibaba, its key competitor, and four other Internet company executives at the meeting to keep out new competitors. Announced that it warned.