Authorities of China have recently slapped Alibaba with a $2.8 billion fine after finishing the investigation over the antitrust case. The State Administration launched a probe for the regulation of the market into an e-commerce giant during the month of December 2020. The policy particularly forces merchants to sell on this platform exclusively and further prevents them from selling on the other rival e-commerce shopping websites. Through a post from the watchdog website, it can be noticed that this policy has eliminated and restricted the competition totally from the country and has hindered innovation in the online retail platform sector.
As a result, the regulator has penalized Alibaba, an e-commerce shopping site in accordance with China’s antimonopoly law. They have ordered the company to stop all illegal activities and have asked to pay only 4% of their domestic sales in the country. The New York Times has noticed that fine of $2.8 billion will not put the website Alibaba into danger but this penalty exceeds the $975 million penalties the Chinese government imposed on Qualcomm back in the year 2015. In the statement, Alibaba claimed they will accept the penalty and will make sure to carry the responsibilities properly.
Furthermore, the Chinese nation has started keeping a big eye on all the tech giants from last year. Jack Ma’s business became a target in his own nation, when he called the banks of China “state-owned pawnshops” for providing unnecessary loans during finance submit. The executives of Jack Ma had to create a task force so that they could deal with the regulators on daily basis.
Apart from the antimonopoly probe on Alibaba, Shanghai Stock Exchange blocked the plan for Ant Group, the company for financial services founded in November 2020.