Alibaba is being fined a record $2.8 billion in China for antitrust violations

TMTPOST

TMTPOST

· 4月11日

China's State Administration for Market Regulation Imposed Administrative Penalty on Alibaba's anticompetitive practices

China's State Administration for Market Regulation Imposed Administrative Penalty on Alibaba's anticompetitive practices on 10th April.

In December 2020, the State Administration for Market Regulation (SAMR) opened a case against Alibaba Group Holding Limited (hereinafter Alibaba Group) for the abuse of its dominant position in the online retail platform service market within China in accordance with the Anti-Monopoly Law.

Alibaba Group is a dominant player in the online retail platform service market in China. Since 2015, Alibaba Group has been abusing its dominant position by imposing "choose one out of two" requirement on sellers on its platform which prohibits them from establishing presence or participating in promotional activities on rival platforms, and by adopting a variety of incentives and penalties to enforce the 2-choose-1 requirement with the help of its market influence, self-established platform rules and technical means such as data and algorithms in order to maintain and enhance Alibaba's market influence and gain undue competitive edges.

China SAMR's website posted the penalty on Alibaba's anticompetitive practices on 10th April

The investigation shows that Alibaba Group's enforcement of "choose one out of two" has eliminated and restricted competition in the online retail platform service market in China, hindered the free exchange of goods, services, and resources, hampered the innovative development of the platform economy, and infringed on the legitimate rights and interests of sellers on the platform as well as the interests of buyers, which constitutes an abuse of its dominant position by "restricting their trading party so that it may conduct deals exclusively with themselves or with the designated business operators without any justifiable causes" that is prohibited under Article 17 (4) of the Anti-Monopoly Law.

In accordance with the regulation and law, today, the SAMR issued an administrative penalty decision that orders Alibaba Group to cease the violation and imposes a fine of 4% of its 2019 sales within China (RMB 457.512 billion) which totals RMB 18.228 billion- about $2.8 billion. At the same time, in accordance with the principle of combining penalty and education in the Administrative Penalty Law, the SAMR issued an Administrative Guidance Letter to Alibaba Group that requires the platform to overhaul its operations, focusing on fulfilling the main responsibilities of the platform, strengthening its internal control and compliance management, sustaining fair competition, and protecting the legitimate rights and interests of sellers and buyers on the platform, and to submit a compliance self-report to the SAMR for three consecutive years.

Alibaba's response to public

In response to the regulator, Alibaba announced that it had received the penalty decision, "We sincerely accept the penalty and will ensure its compliance with the determination. We will operate in accordance with the law with great diligence, further strengthen the construction of the compliance system, build on growth through innovation, and better fulfill our social responsibilities. "

In 2015, Qualcomm Inc. paid a fine of 6.088 billion yuan - $975 million, which had been the highest in the history of China's antimonopoly, Alibaba will pay nearly triple this amount.

The article is edited by @Jack Chen (email:xiaomingchen@tmtpost.com; Mobile/Wechat: 13678866580). The Chinese version article is published by TMTPOST. Please note source and hyperlink when reproduce.

Follow us now on twitter @tmtpostenglish, Facebook @tmtpost, and LinkedIn @tmtpost 

本文系作者TMTPOST授权钛媒体发表,并经钛媒体编辑,转载请注明出处、作者和本文链接
本文观点仅代表作者本人,钛媒体平台仅对用户提供信息及决策参考,本文不构成投资建议。
想和千万钛媒体用户分享你的新奇观点和发现,点击这里投稿 。创业或融资寻求报道,点击这里

敬原创,有钛度,得赞赏

”支持原创,赞赏一下“
小小日月 小小日月 钛粉40736 小团子_TE7FCjF 钛粉57559 钛粉27830
496人已赞赏 >
496换成打赏总人数496人赞赏钛媒体文章
关闭弹窗

挺钛度,加点码!

  • ¥ 5
  • ¥ 10
  • ¥ 20
  • ¥ 50
  • ¥ 100

支付方式

确认支付
关闭弹窗

支付

支付金额:¥6

关闭弹窗
sussess

赞赏金额:¥ 6

赞赏时间:2020.02.11 17:32

关闭弹窗 关闭弹窗

注册邮箱未验证

我们已向下方邮箱发送了验证邮件,请查收并按提示验证您的邮箱。

如果您没有收到邮件,请留意垃圾邮件箱。

更换邮箱

您当前使用的邮箱可能无法接收验证邮件,建议您更换邮箱

账号合并

经检测,你是“钛媒体”和“商业价值”的注册用户。现在,我们对两个产品因进行整合,需要您选择一个账号用来登录。无论您选择哪个账号,两个账号的原有信息都会合并在一起。对于给您造成的不便,我们深感歉意。