China State Administration for Market Regulation fined Alibaba Group Holding 18.2 billion Yuan or $2.8 billion, according to SCMP. SAMR stated that Alibaba abused its dominant market position in China’s online retail service market since 2015 by forcing merchants to open stores or take part in promotions on its platforms.
SAMR found Alibaba in breach of the country’s monopoly law and was ordered to correct its misconduct and pay a fine equivalent to 4% of its 2019 revenue.
The ruling ends months-long investigations that started last Christmas Eve and sets the precedent for the government to use anti-monopoly rules to regulate the country’s Big Tech.
The fine sends a message that China intends to crack down on any monopolistic behavior if Big Tech companies such as Alibaba breach the law through their business models
Alibaba said it accepts the penalty and will ensure its compliance with determinationAlibaba stock is currently gaining. 9988: HKG is up 6.51%
