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China hits Alibaba with record $2.78bn fine for market abuses

China hits Alibaba with record $2.78bn fine for market abuses

Shanghai: Chinese regulators imposed a record 18.2 billion yuan ($2.78 billion) fines on e-commerce giant Alibaba on Saturday because these actions are believed to have abused the company’s dominant position.

She said that as a leader and one of the most valuable companies in the world, she has passed sanctions and promised on Monday to outline plans for business adjustments. Anti-competitive behavior and misuse of consumer data.

The national market regulator announced that it will assess the fines after an investigation into Alibaba begins in December. Show them on its popular online sites so that they can be offered on competing e-commerce sites at the same time.

“Since 2015, Alibaba Group has been abusing its dominant position,” the regulator called for exclusivity. He added that this requirement harms competition, innovation, and the interests of sellers and consumers. According to Bloomberg News, the fines hit a record high, almost three times the $1 billion fine imposed on Qualcomm in 2015. …

The fines began after market observers decided to fine Alibaba for 4% of its revenue of 455.7 billion yuan in 2019. Soon after announcing this decision, Alibaba regrettably took advantage of many of the government’s recent arguments that “we will accept sanctions wholeheartedly and ensure that our resolve is fulfilled” and promised to make changes to protect competition.

The company added that it will hold a conference call with investors on Monday to share its “ideas and plans for the long-term and healthy development of the business in the future. We strive to provide our distributors and partners with a more open, fair, efficient and inclusive working environment to share the benefits of growth,” he said.

Large technology companies stand the test-e-commerce giants Alibaba and, And messaging and gaming giant Tencent has become extremely profitable. With the growth of China’s digitalization, the development of lifestyles, and the government’s restrictions on major U.S. competitors in the domestic market, as the platform has accumulated hundreds of millions of loyal users, Concerns about their impact are growing in China, where tech-savvy consumers are using them to communicate, buy, pay for taxi fares like Dir-Loans, and perform other daily chores.

After Jack Ma publicly criticized Chinese regulators in October, Alibaba came under special scrutiny. Jack Ma has been in trouble in the past because of concerns about the development of online lending, asset management and consumer product insurance by Ant Group, the online payment arm of Alibaba.

In recent years, his attempts to curb rampant personal debt and chaotic borrowing, the increasing authority of upstart ants, and rare public criticism of Jack Ma have been widely regarded as a challenge to the interests of nation-state companies.

The government’s campaign against tech giants reflects global dissatisfaction with the influence of large-scale technology. Facebook, Google and other companies are also under scrutiny at home and abroad. Even before the announcement on Saturday, China’s actions cost Alibaba and Jack Ma.

Ant Group plans to conduct a US$35 billion IPO between Hong Kong and Shanghai, which would have increased Jack Ma’s already huge wealth, but suddenly, she belonged to her. As a result, Jack Ma disappeared for several weeks.

The regulator ordered Ant Group to become an online payment service provider again. …Alibaba was also under pressure last month to sell various media, including the possible sale of the South China Morning Post in Hong Kong.