Daily Management Review

Chinese authorities to fine Alibaba more than $975M


China's antitrust authorities plan to fine Alibaba for a record amount, The Wall Street Journal reported citing sources.

hinglish Notes
hinglish Notes
According to the publication, the amount of the penalty may exceed $975 million. This amount was paid by Qualcomm in 2015 for violating the country's antitrust laws: currently the largest corporate fine paid by companies in China.

In particular, according to regulators, Alibaba is engaged in unfair competition with competitors. The company restricts promotion of goods of sellers who place their products on several platforms. Because of this, they are forced to opt in to the company. However, the specific measures that the authorities will oblige Alibaba to take are planned only after the regulators' decision is announced, a source said.

In October 2020, Alibaba founder Jack Ma criticised financial regulators at a major business forum in Shanghai. He said China's regulators were "stifling innovation" and banks were operating with a "pawnbroker mentality". 

The businessman called for reform of the financial supervision system, pointing out that its reorganisation would boost economic growth. On 3 November 2020, Chinese regulators abruptly suspended the IPO of Alibaba's financial subsidiary Ant Group. After that, Jack Ma did not appear in public until the end of January. It was reported that the decision to halt the IPO was made personally by Chinese President Xi Jinping.

source: wsj.com