China hits Alibaba with record $2.8 billion fine
China slapped a record $2.8 billion fine on Alibaba Group Holding Ltd. after an anti-monopoly probe found it abused its market dominance.
The Chinese government launched an investigation into Alibaba in December to determine whether the company was preventing merchants from selling their products on other platforms, reports TheVerge. China’s market regulator found that Alibaba’s practices had a negative effect on online retail competition and innovation. Alibaba used data and algorithms to strengthen its own position in the marketplace, resulting in an “improper competitive advantage”.
Business Insider noted that the fine comes several months after Alibaba founder Jack Ma angered government officials, including President Xi Jinping. Speaking at a conference last fall, Jack Ma publicly criticized China’s regulatory system, saying that the country’s financial system was “the legacy of the Industrial Age.”
Xi Jinping then reportedly halted a planned $37 billion initial (R540.6 billion) public offering by Ant Group, another Ma company.
After the clash, Ma disappeared from public view for a few months, fueling speculation over his whereabouts.
More Amazon news
New Communication Guidelines for Amazon buyer-seller messages
Amazon Communication Policy update: What sellers need to know? Amazon has recently updated its Communication Guidelines. Sellers are required to follow them for any communication with buyers. You can see the full details here. What does this mean for Amazon sellers in...
Amazon Early Black Friday Deals start 26th October 2020
Amazon Black Friday Deals submission deadlines This year Amazon will be running three weeks for Early Black Friday Deals starting at the end of October, followed by Black Friday and Cyber Monday at the end of November. Early Black Friday Deals will be available to ALL...
Amazon may face strict liability for defective products it sells
Amazon to be held liable for defective third-party products California appeals court subjected Amazon to strict liability for defective products sold by third parties on its marketplace. The case was filed by Amazon customer Angela Bolger who purchased a replacement...