China imposes a billion dollar fine on web store group Alibaba of tech billionaire Jack Ma for monopoly practices. This involves a total of 18.2 billion yuan, which equates to 2.3 billion euros. State media in China report that the Chinese regulator decided on the fine following an investigation launched in December. The fine is equal to 4 percent of Alibaba’s domestic sales in 2019, the regulator said.
–
Alibaba must also take a number of measures to ensure, among other things, fair competition, respect the rights of consumers and protect companies that use Alibaba’s platforms. During the next three years, the company will have to submit reports on self-regulation to the regulator. The company has stated in a statement that it accepts the fine. The company also says it will better fulfill its social responsibility.
–
Supervision
The Chinese authorities have been tightening up the supervision of companies such as Alibaba for some time. The Chinese government has decided to take tougher action against large corporations that hold a lot of power, and until recently were bound by few rules.
–
For example, the IPO of Alibaba’s subsidiary and financial services provider Ant Financial was stopped at the last minute by the Chinese regulator last year. Authorities feared the company would pose a risk to the stability of China’s financial system. Ant Financial’s IPO should have been the largest in the world. The government also wants the Alibaba group disposes of its media interests.
–
–
CEO Jack Ma therefore does not have a good relationship with Beijing. He himself has not appeared in public since October 2020, when he openly criticized Chinese regulators and state-owned banks. Only in January he left hear from them briefly in a video message. In March, the Chinese regime put the top man under pressure again: Beijing is said to have forced an elite university founded by Ma to stop new enrollments.
–
Also read:
–
Beijing bans new enrollments for Jack Ma academy
–
Free unlimited access to Showbytes? Which can!
Log in or create an account and don’t miss out on the stars.
–
–
