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 sues “get rich quick” FBA course sellers
Amazon sues coaches for selling deceptive courses of no valueAmazon started suing people and companies for selling courses on how to make money on Amazon.Amazon filed suit against Online Secrets, Prime Global Source, Michael Gazzola, Matthew Behdjou and...
Amazon Will Impose Stricter Storage Limits in January
Amazon Wants Sellers to Optimize Warehouse Space Amazon will impose stricter storage limits on sellers who use Fulfillment by Amazon in January. The reason for the policy change is the company's push for faster delivery - specifically, transitioning Prime...
Paypal to enter Chinese market for online payments
PayPal is the first foreign company to win Chinese payments licensePayPal has become the first foreign company to acquire a payments licence in China, after buying a majority stake in GoPay. GoPay has licenses for online and mobile transactions, and...