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Chinese Government Fines Alibaba $3.7 Billion for Anti-competitive Behaviour - ABC News

Accepted submission by upstart at 2021-04-12 02:24:54
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Chinese government fines Alibaba $3.7 billion for anti-competitive behaviour - ABC News [abc.net.au]:

Chinese regulators have fined Alibaba Group, the world's biggest e-commerce company, 18.3 billion yuan ($3.7 billion) for anti-competitive tactics.

Key points:

  • The company said it "accepts the penalty with sincerity"
  • China's Communist Party is making anti-monopoly enforcement, especially in tech, a priority this year
  • Founder Jack Ma disappeared temporarily from public view earlier this year after criticising regulators

The State Administration for Market Regulation on Saturday announced Alibaba was fined for "abusing its dominant position" to limit competition by retailers that use its platforms and hindering "free circulation" of goods.

It said the fine was equal to 4 per cent of Alibaba's total 2019 revenue.

It promised to "operate in accordance with the law with utmost diligence".

China's ruling Communist Party is concerned about the dominance of the country's biggest internet companies, which are expanding into finance, health services and other sensitive areas.

The party says anti-monopoly enforcement, especially in tech, is a priority this year.

Fine another setback for Jack Ma

The move is a new setback for Alibaba and its billionaire founder, Jack Ma, following a November decision by regulators to suspend the stock market debut of Ant Group, a finance platform spun off from the e-commerce giant.

It would have been the world's biggest initial public stock offering last year.

Mr Ma, one of China's richest and most prominent entrepreneurs, disappeared temporarily from public view after criticising regulators in a November speech [abc.net.au].

That was followed days later by the Ant Group suspension, though finance specialists said regulators already had been worried Ant lacked adequate financial risk controls.

Alibaba, launched in 1999, operates retail, business-to-business and consumer-to-consumer platforms.

It has expanded at a breakneck pace into financial services, film production and other fields.

China cracking down on market monopolies

The government issued anti-monopoly guidelines in February aimed at preventing anti-competitive practices such as exclusive agreements with merchants and use of subsidies to squeeze out competitors.

The next month, 12 companies including Tencent Holdings, which operates games and the popular WeChat messaging service, were fined the equivalent of $100,000 each on charges of failing to disclose previous acquisitions and other deals.

Regulators said in December they were looking into possibly anti-competitive tactics by Alibaba including a policy dubbed "choose one of two" which requires business partners to avoid dealing with its competitors.

Also in December, regulators announced executives of Alibaba, its main competitor, JD.com, and four other internet companies were summoned to a meeting and warned not to use their market dominance to keep out new competitors.

Also in December, regulators announced executives of Alibaba, its main competitor, JD.com, and four other internet companies were summoned to a meeting and warned not to use their market dominance to keep out new competitors.

Posted 1dday agoSatSaturday 10 AprApril 2021 at 2:27pmShare

From Daddy Ma to 'evil capitalist', how did China's richest man Jack Ma fall from grace? [abc.net.au] Alibaba's Jack Ma makes first public appearance since October in online meeting [abc.net.au] From Daddy Ma to 'evil capitalist', how did China's richest man Jack Ma fall from grace? [abc.net.au] Alibaba's Jack Ma makes first public appearance since October in online meeting [abc.net.au] More on:

Chinese regulators have fined Alibaba Group, the world's biggest e-commerce company, 18.3 billion yuan ($3.7 billion) for anti-competitive tactics.

Key points:

  • The company said it "accepts the penalty with sincerity"
  • China's Communist Party is making anti-monopoly enforcement, especially in tech, a priority this year
  • Founder Jack Ma disappeared temporarily from public view earlier this year after criticising regulators

The State Administration for Market Regulation on Saturday announced Alibaba was fined for "abusing its dominant position" to limit competition by retailers that use its platforms and hindering "free circulation" of goods.

It said the fine was equal to 4 per cent of Alibaba's total 2019 revenue.

It promised to "operate in accordance with the law with utmost diligence".

China's ruling Communist Party is concerned about the dominance of the country's biggest internet companies, which are expanding into finance, health services and other sensitive areas.

The party says anti-monopoly enforcement, especially in tech, is a priority this year.

Fine another setback for Jack Ma

The move is a new setback for Alibaba and its billionaire founder, Jack Ma, following a November decision by regulators to suspend the stock market debut of Ant Group, a finance platform spun off from the e-commerce giant.

It would have been the world's biggest initial public stock offering last year.

Mr Ma, one of China's richest and most prominent entrepreneurs, disappeared temporarily from public view after criticising regulators in a November speech [abc.net.au].

That was followed days later by the Ant Group suspension, though finance specialists said regulators already had been worried Ant lacked adequate financial risk controls.

Alibaba, launched in 1999, operates retail, business-to-business and consumer-to-consumer platforms.

It has expanded at a breakneck pace into financial services, film production and other fields.

China cracking down on market monopolies

The government issued anti-monopoly guidelines in February aimed at preventing anti-competitive practices such as exclusive agreements with merchants and use of subsidies to squeeze out competitors.

The next month, 12 companies including Tencent Holdings, which operates games and the popular WeChat messaging service, were fined the equivalent of $100,000 each on charges of failing to disclose previous acquisitions and other deals.

Regulators said in December they were looking into possibly anti-competitive tactics by Alibaba including a policy dubbed "choose one of two" which requires business partners to avoid dealing with its competitors.

Also in December, regulators announced executives of Alibaba, its main competitor, JD.com, and four other internet companies were summoned to a meeting and warned not to use their market dominance to keep out new competitors.

Also in December, regulators announced executives of Alibaba, its main competitor, JD.com, and four other internet companies were summoned to a meeting and warned not to use their market dominance to keep out new competitors.

Posted 1dday agoSatSaturday 10 AprApril 2021 at 2:27pmShare

From Daddy Ma to 'evil capitalist', how did China's richest man Jack Ma fall from grace? [abc.net.au] Alibaba's Jack Ma makes first public appearance since October in online meeting [abc.net.au] From Daddy Ma to 'evil capitalist', how did China's richest man Jack Ma fall from grace? [abc.net.au] Alibaba's Jack Ma makes first public appearance since October in online meeting [abc.net.au] More on:

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