Alibaba fined $2.8 billion in anti-monopoly investigation

By: Miguel A. Rodriguez

17:26, 12 April 2021

1618216483.png
Chinese regulators found out that Alibaba abused its market dominance, forcing merchants to choose between two platforms

China’s State Administration for Market Regulation (SAMR) announced that Alibaba received a fine as the company abused its market dominance.

Following an investigation for monopolistic practices opened in December, Alibaba received a $2.8 billion fine, and according to SAMR’s statement: “infringes on the businesses of merchants on the platforms and the legitimate rights and interests of consumers.” Moreover, the Chinese giant will have to file self-examination and compliance reports to the SAMR for three years.

Daniel Zhang, Alibaba CEO, mentioned that the fine would not have a material impact on the company. Also, he said that Alibaba would introduce new measures to lower the entry barriers and costs for merchants and business on the platform. Moreover, the company will continue to expand to smaller Chinese cities and rural areas.

Alibaba’s fine comes when China is paying close attention to its tech companies, as regulators are concerned about the tech giants that operate in the financial sector.

However, the fine didn’t seem to affect Alibaba stock, as it gained 8% during the Hong Kong trading hours.

Source: cnbc.com

Share this article

The information presented herein is prepared by CAPEX.com/eu and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.                                                                                                                            Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation.Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance and forecasts are not reliable indicators of future results.