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 will increase FBA fees in January 2022
Amazon hits sellers with fee increases in 2022 Amazon has announced its plans to increase FBA fees starting from January 18, 2022. The company justified the fee increases by claiming that it had doubled its US fulfillment capacity since the start of the pandemic,...
Nearly half of product searches start on Amazon and Ebay
Brand loyalty becomes less important to consumers Marketplaces are now a starting point in 44 percent of all product searches. This is more than twice the number of searches in search engines. In 44% of all product research, marketplaces like Amazon and eBay are the...
Amazon against shadowy marketing practices
Amazon clarifies its policy on rebates, coupons and other incentives offered outside the platform Amazon is cracking down on sellers who engage in practices that violate its Seller Code of Conduct, including the use of two-step URLs, funnels, and treasure hunts,...
