China imposed a fine of 18.2 billion yuan ($2.8 billion) on Alibaba Group after an anti-monopoly probe, part of a regulatory crackdown that has raised concerns about the future of Jack Ma’s tech empire.
The penalty is equivalent to 4% of Alibaba’s domestic sales in 2019, China’s State Administration for Market Regulation said in a statement on Saturday.
Alibaba will also be required to implement “comprehensive rectifications,” including strengthening internal controls, upholding fair competition, protecting businesses on its platform and consumers’ rights, the regulator said. The company will be required to submit reports on self-regulation to the authority for three consecutive years.
Alibaba has been under mounting pressure from Chinese authorities since its founder Ma spoke out against China’s regulatory approach to the finance sector in October. Those comments set in motion an unprecedented regulatory offensive, including scuttling plans for Ma’s Ant Group Co.’s $35 billion initial public offering.
The company said it “sincerely” accepted the penalty and will comply.
“We will intensify our operation according to the law, further strengthen the construction of the compliance system based on innovation and development, and better fulfill social responsibility,” Alibaba said on Saturday.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU