China fines Alibaba record $2 75 billion for violations gulftoday.ae - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from gulftoday.ae Daily Mail and Mail on Sunday newspapers.
By Reuters Staff
5 Min Read
(Reuters) - China slapped a record $2.75 billion antitrust fine on Alibaba Group Holding Ltd on Saturday, after regulators determined the e-commerce giant had abused its dominant market position for several years.
FILE PHOTO: Alibaba Group co-founder and executive chairman Jack Ma attends the World Artificial Intelligence Conference (WAIC) in Shanghai, China, September 17, 2018. REUTERS/Aly Song/
The Alibaba business empire has come under intense scrutiny in China since its billionaire founder Jack Ma’s stinging public criticism of the country’s regulatory system in October. [L1N2M3010]
Following are key events leading up to the fine on Alibaba.
HONG HAO, HEAD OF RESEARCH BOCOM INTERNATIONAL, HONG KONG
“This penalty will be viewed as a closure to the antimonopoly case for now by the market. It’s indeed the highest profile antimonopoly case in China.
“The market has been anticipating some sort of penalty for some time … but people need to pay attention to the measures beyond the antimonopoly investigation, such as the divestment of media assets.”
MITCHELL KIM, INDEPENDENT TMT ANALYST, NEW YORK
“I think it’s actually positive in that the share overhang will finally be lifted. Known downside is better than an unknown risk. The fine is record-setting but it is still less than 1% of Baba’s market cap.
SHANGHAI (REUTERS) - Chinese regulators have fined Alibaba Group Holding Ltd 18 billion yuan (S$3.69 billion) for violating anti-monopoly rules and abusing its dominant market position, marking the highest ever antitrust fine to be imposed in the country.
The penalty, equivalent to around 4 per cent of Alibaba’s revenues in 2019, comes amid an unprecedented regulatory crackdown on the home-grown technology conglomerates in the last few months that have weighed on company shares.
Alibaba’s billionaire founder Jack Ma’s business empire has been particularly put under intense scrutiny after his stinging criticism of China’s regulatory system in late October.
In late December, China’s State Administration for Market Regulation (SAMR) announced it launched an antitrust probe into the company.
Why Alibaba Just Got Hit With A Record $2 87 Billion Fine In China yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.