Shanghai: Chinese regulators have fined Alibaba 18 billion yuan ($3.66 billion) - around 4 per cent of its revenues in 2019 - for violating anti-monopoly rules and abusing its dominant market position.
The State Administration for Market Regulation (SAMR) said that after an investigation launched in December, it had determined that Alibaba Group had been “abusing market dominance” since 2015 by preventing its merchants from using other online e-commerce platforms.
Alibaba founder Jack Ma only recently resurfaced online after months away from the spotlight. Credit: AP
It said the practice violates China’s anti-monopoly law by hindering the free circulation of goods and infringing on the business interests of merchants.
The ruling Communist Party is tightening control over China’s biggest e-commerce and other internet companies and has warned them not to use their industry dominance to stifle competition.
The SAMR ordered Alibaba to make “thorough rectifications” to strengthen internal compliance and protect consumer rights.
The company 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.
The practice of preventing merchants from listing on rival platforms is a long-standing one. The market regulator spelled out in rules issued in February that it was illegal.
Alibaba has also been under heavy scrutiny since its founder Jack Ma criticised China’s regulatory system in October.