Alibaba Group Headquarters Hangzhou
Caproasia.com | The leading source of data, research, information & resource for financial professionals, institutional investors, professional investors and private investors (UHNWs, & HNWs). Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets?

This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion.





Alibaba Fined $2.78 Billion by China State Regulator for Anti-Monopoly Practices

10th April 2021 | Hong Kong

The State Administration for Market Regulation (SAMR) of China, has fined Alibaba Group $2.78 billion (CNY 18.23 billion) for anti-monopoly practices, using its market dominance by preventing its merchants from using other online e-commerce platforms.  Alibaba had ran promotions on its online platforms for online merchants, and pressured online merchants to “pick 1 from 2” – picking Alibaba platform instead of a competitor.  

“ Alibaba Fined $2.78 billion for Anti-Monopoly Practices “

 


Alibaba to Pay $2.78 Billion, to Improve Processes

Alibaba Group Headquarters Hangzhou 1
Alibaba Group Headquarters Hangzhou

In an official statement released by the State Administration for Market Regulation (SAMR) of China on 10th April 2021, the investigation on Alibaba Group anti-monopoly practices had started in December 2020.  The investigation revealed Alibaba Group had violated China’s anti-monopoly law and have imposed a fine of $2.78 billion (CNY 18.23 billion) representing around 4% of Alibaba’s 2019 revenue.  Alibaba Group had also been instructed to strengthen its internal processes and to protect merchant and consumer interests. 

Alibaba released a statement shortly that it will accept the fine and will comply with the order from the State Administration for Market Regulation (SAMR) of China. 

 

Largest Anti-Competition Fine Imposed in China

The $2.78 billion (CNY 18.23 billion) fine to Alibaba is the largest fine imposed in China for anti-competition practices. 

In 2015, United States technology company Qualcomm paid a then-record $975 million (CNY 6 billion) fine for anti-competitive practices.  The $975 million fine represents 8% of Qualcomm sales in China for 2013.  The maximum fine allowed in China by state regulator is 10% of sales.  

 

Alibaba Group under Scrutiny in China

In November 2020, Ant Group planned IPO that will raise $34.5 billion and create a Chinese financial technology giant with more than $300 billion market capitalization, has been suspended by both Shanghai and Hong Kong Exchange on Tuesday (3/11/20).

In March 2021, the Chinese government have directed internet and technology giant Alibaba Group to sell or reduce its vast media assets, including Hong Kong’s South China Morning Post (SCMP), in a move to reduce its massive influence on public opinions.

Alibaba was founded in 1999 by Jack Ma and 17 friends and students in China.  Today, it is one of the world’s largest e-commerce and technology company in the world.  

 

Related:

More:



Caproasia.com | The leading financial website for financial professionals, professional investors and HNW investors. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Quicklinks: Caproasia Access | TFC | Caproasia | Jobs

Join 14,000+ leading financial professionals and professional investors in Asia. Stay ahead of your peers & competition.
For press release, email to press@caproasia.com
For editorial, media kit, listing on TFC, events, seminars or research & data services, email to mail@caproasia.com


Previous articleIndonesia President Jokowi Targets $200 Billion Sovereign Wealth Fund
Next articleChina Regulators to Supervise Ant Group, Direct Restructuring
Caproasia.com covering capital markets, investments and private wealth in Asia. Our users manage, advise & invest $25 trillion assets in Asia