Alibaba Group helmed by billionaire Jack Ma has been fined $2.75 Billion in China for violating anti-monopoly rules and abusing its dominant market position. This is the highest ever antitrust fine imposed in the country.
Chinese regulators have fined Alibaba Group Holding CNY 18 billion ($2.75 billion or roughly Rs.20,500 crores) for violating anti-monopoly rules and abusing its dominant market position, marking the highest ever antitrust fine to be imposed in the country. The penalty, equivalent to around four percent of Alibaba’s 2019 revenues, comes amid an unprecedented regulatory crackdown on home-grown technology conglomerates in the past few months that have weighed on company shares. 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. In late December, China’s State Administration for Market Regulation (SAMR) announced it launched an antitrust probe into the company. That came after authorities scuttled a planned $37 billion IPO from Ant Group, Alibaba’s internet finance arm. While the fine brings Alibaba a step closer to resolving its antitrust troubles, Ant still needs to agree to a regulatory-driven revamp that is expected to sharply cut its valuations and rein in some of its freewheeling businesses. “This penalty will be viewed as a closure to the anti-monopoly case for now by the market.
