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China fines Alibaba $ 2.8 billion over antitrust probe

China has attacked Alibaba, one of the country’s largest online retailers, with a $ 2.8 billion (18.2 billion yuan) fine after an investigation found the e-commerce giant violated Chinese antitrust laws. New York Times The fines, which accounted for 4 percent of Alibaba’s 2019 domestic sales, were three times higher than the $ 975 billion fines China imposed against U.S. chip company Qualcomm in 2015.

The Chinese government launched an investigation into Alibaba in December to determine whether the company is preventing its products from trading on other platforms, China’s market regulator found that Alibaba̵

7;s practices adversely affect competition. And online retailing innovation Alibaba used data and algorithms to strengthen its position in the market, resulting in “An improper competitive advantage,” China’s market regulator said in a statement, the company will have to cut its anti-competitive strategy and provide a compliance report to the government over the next three years.

Alibaba said in a statement it accepted the adjustments and pledged to make improvements to better meet “social responsibility”.

“We will strengthen our focus on creating customer value and customer experience, and introduce measures to reduce entry barriers and operating costs on our platform. Going forward, ”the company statement read,“ We ​​are committed to ensuring an operating environment for our stores and partners that is more open, more equitable, more efficient and inclusive in sharing results. Of growth “

However, the hefty fines are unlikely to hurt Alibaba’s bottom line too seriously. In February, the company reported third-quarter profit – in the last three months of the 2020 calendar year alone – $ 12 billion.

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