Commentary: Why Chinas US$2.8 billion fine is a huge relief for Alibaba

By Bo Zhiyueabout 1 month ago

SHENZHEN:Chinas State Administration for MarketRegulation(SAMR)issued a statement against Alibaba Groupon Saturday (Apr 10), accusing the e-commerce company of violatingthe anti-monopoly law and imposing a fine of 18.23 billion yuan (US$2.8 billion) for monopolistic conduct.

The largest fine handed out by authorities ever for anti-competitive behaviour, thepenalty is4per centof Alibabas total sales in China, which stoodat456 billion yuan (or US$69 billion) in 2019.

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But the acceptance of the ruling was swift.In a press release issued on the same day, Alibaba said it would accept the fine and ensure its compliance.

In subsequent calls with investors, Alibaba executives even reaffirmed the importance of oversight, support and guidance from regulators in achieving continued growth.

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