E-commerce giant Alibaba was fined nearly 24 billion Norwegian kroner for monopolistic activities. This is the largest fine in Chinese history.
Chinese authorities denied earlier this week that they planned to impose huge fines on e-commerce companies for violating competition rules. On Saturday, state media reported that the fine would still exist.
The fine was 18.2 billion yuan, equivalent to 23.6 billion Swedish kronor. This cap was set because it accounted for 4% of Alibaba’s turnover in 2019.The fine is the largest of its kind in Chinese history
The US News Agency pointed out that the fines were imposed at a time when Chinese authorities were seeking to tighten Alibaba and other Internet giants.
According to the national market regulator, Alibaba uses its dominant position in the market to deter competitors.
Alibaba is one of the world’s largest companies. The company’s founder Jack Ma has become an international business celebrity and has caused controversy in his own country.
After challenging the Chinese authorities in a speech last fall, Jack Ma disappeared for a few months before reappearing in January.
In a controversial speech, Jack Ma accused the Chinese authorities of obstructing technological development and accused the country’s banks of being old-fashioned mortgage lenders.
Alibaba’s payment services company Ant Group’s planned listing was suspended, and Jack Ma has disappeared from public view.
This listing will be the world’s largest listing ever, with a market value of more than 300 billion Norwegian kroner.
While suspending the listing, Alibaba launched an investigation into a monopoly that the Chinese authorities consider to be illegal.
The state news agency Xinhua reported that the investigation has now been completed and the conclusion is that Alibaba has violated competition laws.