The Chinese government has fined the world’s largest online portal Alibaba billions of dollars under anti-monopoly (anti-monopoly) law.
According to a report released by the British News Agency, Chinese regulators say that the Internet giant (Alibaba) has been taking undue advantage of its dominance in the market for many years.
In February this year, the Chinese government introduced an anti-monopoly law for Internet companies, which sought to crack down on anti-competitive practices. The legislation was aimed at preventing China’s major e-commerce platforms Alibaba and GD.com from abusing their dominant position in the market.
Remember that Alibaba is considered a big and powerful group in China. Alibaba’s main business is retail, but it has expanded its reach to digital payments, credit, and cloud computing.
In addition, regulators say Alibaba has stopped competition by barring some sellers from using the second plate. Twelve Chinese companies were fined last month for violating anti-monopoly law, but Alibaba’s case is China’s high-profile anti-monopoly case.
“We will recognize the law and ensure its implementation,” the company said in a statement following a 2.75 billion fine imposed by the Chinese government.
Remember that the fine amount is only 4% of Alibaba’s revenue in 2019.
Furthermore, Chinese regulators say Internet giant (Alibaba) has been taking unfair advantage of its market dominance for years.