On April 10th, China's State Administration for Market Regulation issued a fine of RMB 18.28 billion (2.78 Billion USD) to Alibaba, the largest fine since China implemented the Anti-Monopoly Law in 2008.
The official move means that Alibaba's past days of aggressive expansion in China, or official support, are over. The report also alleges that Alibaba abused its dominant position in the market for e-tailing platform services by prohibiting or restricting merchants on the platform from opening stores on other platforms, limiting market competition, infringing on the legitimate rights of merchants on the platform and harming consumer interests.
Alibaba again chose to accept rather than defend itself, as it did last year in the face of accusations from Chinese officials. Alibaba said in an announcement on April 10 that it "sincerely accepts and firmly obeys this penalty," and that "sound government regulation and services have been key to Alibaba's growth to date, for which we are grateful and respectful.”
Many commentators have said the hefty fine against Alibaba is a milestone and a signpost that anti-monopoly enforcement on Internet platforms in China has entered a new phase. It also serves as a warning to the entire Chinese high-tech industry. To Jack Ma himself, paying the fine willingly and submitting his loyalty again to the party could be his only way out. This is probably one of the reasons why Alibaba said in its open letter that it "will be grateful and respectful" of the penalty.
#JackMa #Alibaba #Tencent #XiJinping
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