China Imposes $2.5 Billion Fine On Jack Ma`s Alibaba
Chinese tech giant Alibaba stated on Monday that it accepted a record penalty of $2.5 Billion imposed by the country`s anti-monopoly regulator.
Regulators imposed a $2.5 Billion fine on Alibaba after an investigation revealed that it had abused its market position for years. This fine amounts to about 4% of the company`s 2019 domestic revenue.
An investigation by the regulators revealed that Alibaba had restricted merchants from doing business or running promotions on rival platforms. On this matter, the company stated that it would introduce measures to lower barriers and reduce business costs faced by merchants on e-commerce platforms.
Alibaba Group`s Executive Vice-Chairman Joe Tsai stated that regulators have taken an interest in platforms like Alibaba as they grow in importance. He further added that they accept the fine and are happy to get the matter behind them but the tendency is that regulators will be keen to look at some of the areas where you might have unfair competition.
Sources indicate that though Alibaba is clear in terms of future investigations, the same could not be said for other firms in this sector as China is very keen on regulating the Chinese tech firms which are now a powerful force in the country.