The Chinese government on Saturday dealt a big blow to Jack Ma Alibaba Group of companies by fining them a whopping $ 2.8 billion for breaking anti-monopoly regulations.
Alibaba which is one of the most significant tech giants not just in China but also in the whole world was being investigated by the government of China since December last year after they were accused of “suspected monopolistic conduct.”
Through a statement, China’s State Administration for Market Supervision described the firm’s behaviors as having “eliminated and restricted competition in the online retail platform service market” as well as having “infringed on the business of the merchants on the platform.”
Apparently, the fine is only 4% of $69 billion or 456 billion yuan which was Alibaba’s total 2019 sale in China.
Shockingly, Jack Ma Alibaba group ate humble pie and in a statement confirmed that they would accept the fine and ensure that they fully comply with it.
“The penalty issued today served to alert and catalyze companies like ours. It reflects the regulators’ thoughtful and normative expectations toward our industry’s development. It is an important action to safeguard fair market competition and quality development of Internet platform economies.” They said in a statement.
In the meantime, Alibaba’s affiliate, Ant Group could not jumpstart an initial public stock offering which was predicted to raise $37 billion. The process was however halted by financial regulators in Hong Kong and Shanghai two days prior to the listing of the IPO.