The Strategist

Alibaba says it agrees with the punishment from Chinese watchdog


04/12/2021 - 03:46



Alibaba fully accepts the punishment handed down by China's market regulator for unfair competition, the company said in a statement.



hinglish Notes
hinglish Notes
Earlier, China's State General Administration for Market Control and Regulation fined Alibaba 18.23 billion yuan ($2.78 billion) for antitrust violations, the largest fine in the country's history. The previous record fine of $975 million was paid in 2015 by Qualcomm, which was accused of unfair competition.

According to the regulator, starting in 2015, Alibaba abused its dominant market position and forced merchants on its platform to submit to the so-called "choose only one or the other" principle, meaning it prohibited them from opening shops or participating in promotions on other competing platforms.

The authority alleged that the company used market forces, platform rules and data, algorithms and other technical means, took various incentives and penalties to enforce the principle, maintained and strengthened its market power and gained an unfair competitive advantage.

In addition to the fine, the watchdog required the company to strengthen internal and regulatory compliance controls, maintain fair competition and report to the authority within three years.

Alibaba Group is China's largest internet company and has been active in e-commerce since 1999. The group also owns several subsidiaries and online marketplaces: Alibaba Pictures, AliExpress, Taobao and Tmall.

source: reuters.com




More
< >

Friday, October 22nd 2021 - 08:34 Tesla ends third quarter with record profits of $1.6B