Alibaba hit with record $2.75bn anti-monopoly fine

The Chinese government has levied a record $2.75 billion fine on Alibaba following allegations of monopolistic practices, almost triple the $975 million chip manufacturer Qualcomm had to pay Chinese regulators in 2015.

Alibaba, currently valued at around $608 billion, controls a significant portion of the Chinese domestic e-commerce and cloud computing markets.

The fine represents around 4 per cent of the tech giant’s domestic revenue.

Alibaba will also be forced to introduce new rules to lower barriers to entry and reduce the business costs faced by sellers on its platforms.

The regulators accused Alibaba of restricting merchants from selling on rival platforms.

The fine comes as China is putting increased scrutiny on its domestic technology companies, including stopping a planned $37 billion initial public offering by Ant Group, Alibaba’s internet finance division.

Premier of the State Council of the People's Republic of China Li Keqiang recently made a statement at the National People’s Congress about stamping out monopolies and preventing the “unregulated” expansion of capital.

China's State Administration for Market Regulation (SAMR) said it had fined 12 companies over 10 deals for alleged monopolistic practices.

Shares in Alibaba rose around 9 per cent in Hong Kong trading in response to the reduction in uncertainty about what the actions of the Chinese regulator would be.

Daniel Zhang, chief executive at Alibaba, said they did not expect any “material impact” from the regulator's actions.

"We're happy to get the matter behind us, but the tendency is that regulators will be keen to look at some of the areas where you might have unfair competition," he said.

    Share Story:

Recent Stories


Banking's GenAI evolution: Beyond the hype, building the future
In the first episode of a three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech explores how financial institutions can navigate the transformative potential of Generative AI while building lasting foundations for innovation.

Beyond compliance: Transforming document management into a strategic advantage for financial institutions
In this exclusive fireside chat, John Rockliffe, Pre-Sales Manager at d.velop, discusses the findings of Adapting to a Digital-Native World: Financial Services Document Management Beyond 2025 and explores how FSIs can turn document workflows into a competitive advantage.

Sanctions evasion in an era of conflict: Optimising KYC and monitoring to tackle crime
The ongoing war in Ukraine and resulting sanctions on Russia, and the continuing geopolitical tensions have resulted in an unprecedented increase in parties added to sanctions lists.

Achieving operational resilience in the financial sector: Navigating DORA with confidence
Operational resilience has become crucial for financial institutions navigating today's digital landscape riddled with cyber risks and challenges. The EU's Digital Operational Resilience Act (DORA) provides a harmonised framework to address these complexities, but there are key factors that financial institutions must ensure they consider.