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Doris Yu · · 1 min readSources: Chinese regulators consider levying $975m fine against Alibaba
“Antitrust regulators are considering levying a record fine against Alibaba exceeding the US$975 million that Qualcomm paid in 2015 over anticompetitive practices, so far the largest in China’s corporate history,” reported The Wall Street Journal, citing people with knowledge of the matter.
Details:
- Alibaba will be required to end practices such as punishing its merchants for selling products on both its platform and rival platforms like JD.com, the sources said.
- But with the ecommerce firm highly popular among Chinese households and global investors, officials privy to the matter believe that Beijing wouldn’t want to crush it, especially if it complies by distancing itself from its co-founder Jack Ma and falling in more closely with the Communist Party, the report added.
Context:
- Alibaba’s fintech affiliate Ant Group’s US$35 billion dual-listing was suspended due to regulatory issues in November last year.
- The following month, Chinese regulators kicked off an investigation into Alibaba Group’s alleged monopolistic practices and summoned Ant Group to a high-level meeting over financial regulations.
Editing by Collin Furtado and September Grace Mahino
(And yes, we’re serious about ethics and transparency. More information here.)
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