Alibaba accepts record China fine and vows to change

Sun Online Desk

12th April, 2021 12:30:45 printer

Alibaba accepts record China fine and vows to change


Chinese tech giant Alibaba said on Monday that it accepted a record penalty imposed by the country's anti-monopoly regulator.

Regulators slapped a $2.8bn fine after a probe determined that it had abused its market position for years.

The fine amounts to about 4% of the company's 2019 domestic revenue.

Alibaba Group's executive vice chairman Joe Tsai indicated that regulators have taken an interest in platforms like Alibaba as they grow in importance.

The main issue for regulators was that Alibaba restricted merchants from doing business or running promotions on rival platforms.

The company said it would introduce measures to lower entry barriers and business costs faced by merchants on e-commerce platforms.

The group does not expect any material impact on its business from the change of exclusivity arrangements imposed by regulators.

Jack Ma under pressure

The move is the latest in a chain of regulatory moves targeting the business empire of Jack Ma, who was a co-founder of both Ant Group and Alibaba.

Regulators began to show increasing interest in Ant Group in October, after Mr Ma criticised regulators, suggesting they were stifling innovation.

Shortly after the speech, Chinese regulators scuppered the share market launch of Ant Group, which is Alibaba's sister company and China's biggest electronic payments provider.