Alibaba the biggest E-commerce company of China have been fined by Chinese government for behaving like monopoly
Media reported the State Administration for Market Regulation had imposed the penalty and investigation into Alibaba’s for dealing agreements” that prevented the seller from selling products on rival e-commerce platforms.
This is the highest fine up to now which is the 4% sale of Alibaba in 2019. Before the highest fine was handed out to American chipmaker Qualcomm in 2015 which was $975 Million.
Who is Alibaba ?
Alibaba Group and Alibaba.com, may be a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology. Founded on 28 June 1999 in Hangzhou, Zhejiang, the corporate provides consumer-to-consumer , business-to-consumer, and business-to-business sales services via web portals, also as electronic payment services, shopping search engines and cloud computing services.
Why Alibaba was fined by Chinese Government?
Alibaba was fined for breaking China’s anti-monopoly law. Its offense forbids sellers on its eBay-like platform, Taobao, from listing their products on another similar platform, thus forcing its sellers to choose its platforms over others. Many complaints were filed against Alibaba for such anti-competition practice.