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
Amazon stops deliveries in some cities amid raging protests in the US
Amazon shipping delays due to violent riots in the USAmazon scaled back deliveries in a number of cities including Chicago and Los Angeles after the death of George Floyd sparked demonstrations across the country.Bloomberg reported that Amazon told its...
Amazon is shipping Non-Essential items again
Amazon Recovers From Essentials-Only Amazon has opened its warehouses to all items and reintroduced shopping functionality like deals and recommendations. Fast shipping for non-essentials is back as well. Amazon started accepting new deals last week and...
Amazon is pulling back on promotions to handle surging demand
Amazon wants shoppers to buy less Increasing order volume and operational complications may be forcing Amazon to move away from features and promotions that drive sales. It may take more than two months for Amazon to fulfill orders in all categories,...