A Record Penalty of $ 2.8 Billion to Alibaba!
Monopolization Investigation on Alibaba!
Alibaba was fined a record 18.23 billion yuan,$ 2.8 billion, by Chinese officials for abuse of its dominant position in the market and for violating anti-monopoly rules.
China's State Administration for Market Regulation (SAMR) fined Alibaba $ 2.8 billion for abusing its market dominance and monopolizing the industry. Alibaba stated that they accepted the penalty and will resolve these issues in cooperation with SAMR.
According to the news by CNBC, apart from the company's only penalty of $ 2.8 billion, which is 4% of 2019, it also stated that Alibaba must submit its own compliance and review reports to SAMR for 3 years.
Alibaba announced in a statement that the company accepted the penalty and will adhere to SAMR's commitment. In the statement made, it was said that Alibaba fully cooperated in the investigation, made its own self-criticism and made a regulation in its internal systems.
Alibaba's billionaire founder Jack Ma's business empire has come under particularly intense scrutiny after his criticism of the Chinese government's regulatory system last October.
The Chinese government has recently cornered the big companies and technology giants in its country, explaining that the reason for this is to dominate their markets by growing in their sectors, and the Chinese government has been forcing companies and imposing various penalties for the past year. As a result of these, the government even created a 22-page draft for companies such as Alibaba, Xiaomi, JD.com, Tencent, causing the company values to fall.
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