Alibaba is one of the most influential tech giants in China and the world. The company was under investigation by the Chinese authorities since December to get “suspected monopolistic conduct.”
In a statement Saturday, China’s State Administration for Market Supervision described the company’s behaviors as having “eliminated and limited competition in the online retail stage service marketplace” as well as using”infringed on the business of the retailers on the platform.”
The fine is 4 percent of Alibaba’s overall 2019 earnings in China, 456 billion yuan, or more than $69 billion.
In a press release issued Saturday, Alibaba explained it would take the fine and “guarantee its compliance with a conclusion.”
“The penalty issued today served to alert and catalyze firms like ours,” the release stated. “It reflects the regulators’ considerate and normative expectations toward our industry’s development. It’s a significant action to safeguard fair market competition and excellent development of Internet platform economies.”
The fine comes after weeks of complications to get Alibaba.
The process was stopped by financial regulators in Shanghai and Hong Kong two days ahead of the IPO was expected to record.
“China does not have a systemic financial risk problem. Chinese fund doesn’t carry risk; instead, the risk comes from needing a system,” he said. He also criticized the country’s state banks, comparing them to “pawnshops.”
Following his comments, Ma didn’t appear in public until late January when he spoke via video at an event for rural teachers in China.
Alibaba is expected to react to the government’s imposed nicely through a scheduled conference call set for Monday afternoon Hong Kong time further.