The Chinese authorities has announced the imposition of a fine of 18.2 billion Chinese yuan ($2.78 billion) on e-commerce group Alibaba for violations related to the group’s dominance over the e-commerce market.
According to the New China Agency, the announcement was made on Saturday as an investigation was opened into the case last December.
The charges against the group included exclusivity on some merchants wishing to market and sell their products through the platform and prevented them from promoting them through other competing e-commerce sites.
According to the Chinese agency, the value of the fine was determined after the specialized authority decided to impose a fine equivalent to 4% of the value of the group’s revenues for the year 2019, equivalent to 455.7 billion yuan.
during the past year, the Chinese authorities reported that an investigation was opened into Alibaba’s “suspicions of monopoly”.
Alibaba is one of the biggest companies around the world.
The news of fining the group came as a thunderbolt on Chinese and international trade as it represents as a symbol of technological success in China and the world at large.
The State Administration for Market Regulation said Alibaba had contacted the Ant Group known internationally internet finance firm for issues related to supervision.
Several months ago, the Chinese authorities canceled the listing of this subsidiary of the Alibaba group on the stock exchange at the last minute.
The People’s Daily, the mouthpiece of the Chinese Communist Party, said at the time that the investigation into Alibaba’s violations constitutes an important step for our country to strengthen anti-monopoly oversight in the Internet sector and promote the long-term sound development of the digital economy.
The newspaper also added, in a move indicating public authorities’ dissatisfaction with Alibaba, a fine of 500,000 yuan (62,000 euros) was imposed on the group last week for failing to inform the authorities of the acquisition.
Alibaba Group is a Chinese holding company within the Chinese private sector.
Most of the group’s revenues are from commercial activities via the Internet, including a search engine for shopping, cloud computing services, online payment services, wholesale and retail trade, in addition to a public market aimed at facilitating trade between companies, individuals and merchants, both internationally and in China.