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SHANGHAI/HONG KONG (Reuters) -China slapped a record 18 billion
yuan ($2.75 billion) fine on Alibaba Group Holding Ltd on
Saturday, after an anti-monopoly probe found the e-commerce
giant had abused its dominant market position for several years.
The fine, about 4% of Alibaba�s 2019 domestic revenues, comes
amid a crackdown on technology conglomerates and indicates
China�s antitrust enforcement on internet platforms has entered
a new era after years of laissez-faire approach.
The Alibaba business empire has come under intense scrutiny in
China since billionaire founder Jack Ma�s stinging public
criticism of the country�s regulatory system in October.
A month later, authorities scuttled a planned $37 billion IPO by
Ant Group, Alibaba�s internet finance arm, which was set to be
the world�s biggest ever. The State Administration for Market
Regulation (SAMR) announced its antitrust probe into the company
in December.
While the fine brings Alibaba a step closer to resolving its
antitrust woes, Ant still needs to agree to a regulatory-driven
revamp that is expected to sharply cut its valuations and rein
in some of its freewheeling businesses.
�This penalty will be viewed as a closure to the anti-monopoly
case for now by the market. It�s indeed the highest profile anti-
monopoly case in China,� said Hong Hao, head of research BOCOM
International in Hong Kong.
�The market has been anticipating some sort of penalty for some
time ... but people need to pay attention to the measures beyond
the anti-monopoly investigation.�
The SAMR said it had determined that Alibaba, which is listed in
New York and Hong Kong, had been �abusing market dominance�
since 2015 by preventing its merchants from using other online e-
commerce platforms.
The practice, which the SAMR has previously spelt out as
illegal, violates China�s antimonopoly law by hindering the free
circulation of goods and infringing on the business interests of
merchants, the regulator added.
https://www.reuters.com/article/us-china-alibaba-idINKBN2BX015
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