China Fines Alibaba $2.75 Billion For Anti-Monopoly Violations

Chinese regulators have fined Alibaba Group Holding Ltd 18 billion yuan or $2.75 billion for violating anti-monopoly rules and abusing its dominant market position.

Alibaba’s billionaire founder Jack Ma’s business empire has been particularly put under intense scrutiny after his stinging criticism of China’s regulatory system in late October.

China’s State Administration for Market Regulation (SAMR) had in late December, announced it launched an antitrust probe into the company after authorities stopped a planned $37 billion IPO from Ant Group, Alibaba’s internet finance arm.

SAMR said that Alibaba had been abusing market dominance since 2015 by preventing its merchants from using other online e-commerce platforms.

The penalty, which comes to about 4% of Alibaba’s revenues in 2019, comes amid an unprecedented regulatory crackdown on home-grown technology conglomerates in the last few months that have weighed on company shares.

In response, Alibaba said in a statement posted on its official Weibo account that it ‘accepted’ the decision and would resolutely implement SAMR’s rulings. It said it would also work to improve corporate compliance.