Chinese officials have fined e-commerce giant Alibaba Group 18.228 billion yuan for “two-for-one” monopoly. In this regard, Alibaba expressed its firm obedience; the analysis pointed out that the fine is less than expected and the impact on Alibaba is not big.
The Central News Agency reported today that Chinese officials have fined e-commerce giant Alibaba Group 18.228 billion yuan for “two-for-one” monopoly. Alibaba said it was determined to comply. According to Alibaba, it received the administrative punishment decision letter from the General Administration of Municipal Supervision, accepted the punishment sincerely and obeyed it firmly, and will strengthen its operation according to the law, further strengthen the construction of compliance system, base on innovation and development, and better fulfill its social responsibility.
Hong Kong’s official Radio Television Hong Kong cited analysis that the 4% fine is more than the old anti-monopoly law fine, but less than the market’s original expectation of a 10% sales fine, which is not believed to have a significant impact on Ali’s finances. The official website of China’s State Administration of Market Supervision and Administration announced in the morning that, after an investigation, Alibaba Group Holdings Ltd. has abused its dominant market position since 2015 by “imposing ‘two-for-one’ requirements on merchants on the platform and prohibiting them from opening stores or participating in promotional activities on other competing platforms “
The announcement stated that the State Administration of Market Supervision of China, in accordance with the relevant provisions of the Anti-Monopoly Law and taking into account the nature, extent and duration of Alibaba’s illegal acts, made an administrative penalty decision ordering Alibaba Group to stop the illegal acts and imposing a fine of 4% of its 2019 sales in China of RMB 457.512 billion, or RMB 18.228 billion. of the fine, totaling 18.228 billion yuan.
According to the Central News Agency, the Standing Committee of China’s National People’s Congress (NPC) launched an enforcement inspection of the Anti-Unfair Competition Law last year, in which the “two-for-one” monopoly refers to online platforms “taking advantage of their dominant position and merchants’ dependence on them to use unfair means to force small and medium-sized merchants to make ‘two-for-one The “second-choice” monopoly refers to online platforms “taking advantage of their dominant position and merchants’ dependence on them, and using unfair means to force small and medium-sized merchants to ‘choose one’.
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