The penalty, equivalent to around four percent of Alibaba's
2019 revenues, comes amid an unprecedented regulatory crackdown on home-grown
technology conglomerates in the past 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.
That came after authorities scuttled a planned $37 billion IPO from Ant Group,
Alibaba's internet finance arm.
While the fine brings Alibaba a step closer to resolving its
antitrust troubles, Ant still needs to agree to a regulatory-driven revamp that
is expected to sharply cut its valuations and rein in some of its freewheeling
businesses.
"This penalty will be viewed as a closure to the
anti-monopoly case for now by the market. It's indeed the highest profile
anti-monopoly case in China," said Hong Hao, head of research BOCOM International
in Hong Kong.
"The market has been anticipating some sort of penalty
for some time ... but people need to pay attention to the measures beyond the
anti-monopoly investigation."
SAMR said on Saturday that it had determined that Alibaba
had been "abusing market dominance" since 2015 by preventing its
merchants from using other online e-commerce platforms.
It said the practice violates China's anti-monopoly law by
hindering the free circulation of goods and infringing on the business
interests of merchants.
The SAMR ordered Alibaba to make "thorough
rectifications" to strengthen internal compliance and protect consumer
rights.
Alibaba said in a statement posted on its official Weibo
account that it "accepted" the decision and would resolutely
implement SAMR's rulings.
It said it would also work to improve corporate compliance.
The Chinese e-commerce giant said it will hold a conference
call on Monday to discuss the penalty decision.
'Fine bill is a milestone'
Alibaba had come under fire in the past from rivals and sellers
for allegedly forbidding its merchants from listing on other e-commerce
platforms.
The practice of preventing merchants from listing on rival
platforms is a long-standing one, and the regulator spelled out in rules issued
in February that it was illegal.
"The fine bill is a milestone and road sign with great
importance," Shi Jianzhong, antitrust consultant committee member of the
State Council and professor of China University of Political Science and Law,
wrote in state-backed Economic Times.
"It indicates that the antitrust law enforcement on
internet platforms has entered a new era, and released clear policy
signal."
Beijing has vowed to strengthen oversight of its big tech
firms, which rank among the world's largest and most valuable, citing concerns
that they have built market power that stifles competition, misused consumer
data and violated consumer rights.
Besides Ma's Alibaba, regulators have also been targeting
other internet behemoths.
Although Ma has stepped down from corporate positions and
earnings calls, he retains significant influence over Alibaba and Ant, and has
promoted them globally at business and political events.
Ma, who commands a cult-like reverence in China, had briefly
disappeared from public view since October 24, when he blasted China's
regulatory system in a speech at a Shanghai forum. He reappeared in January.
© Reuters
0 comments:
Post a Comment