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Technology company “Alibaba” said it had accepted the huge fine imposed on it by the anti-trust regulator in China.
Regulators imposed a $ 2.8 billion fine on the company following an investigation that concluded that the company had used its market position for years.
The fine is equivalent to about 4 percent of the local revenues the company generated during 2019.
“We are happy to go over this issue, but the trend is that the regulators will be keen to monitor some aspects that may see unfair competition,” said Joseph Tsai, executive vice president of Alibaba Group.
The company stated that it had no information about the Chinese regulators conducting further investigations, but indicated that “Alibaba” and its competitors will remain under review in China against the background of mergers and acquisitions.
The main issue for the regulators was that the Alibaba Group had imposed restrictions on merchants regarding displaying their products on the competing platforms.
The company said that it will adopt certain measures to overcome existing barriers and reduce costs faced by merchants in e-commerce platforms.
“Given the fine, we have received good guidance on certain issues that fall under the clause of the Antitrust Act,” Tsai said.
This is the latest measure targeting the company, after co-founder Jack Ma criticized the organizers last year, indicating that they impose restrictions on innovation.
Chinese regulators have suspended the IPO of Ant Group, a sister company of Alibaba and the largest provider of electronic payments in China.
However, some commentators have noted that regulators have legitimate concerns about the Ant Group’s financial arm.
It had been expected that the group would be the largest company in the Hong Kong stock market.
But Alibaba is not the only Chinese company that has come under scrutiny by Chinese regulators.
The Chinese government administration responsible for market regulation said last month that it had imposed fines on 12 companies for 10 commercial transactions that violated antitrust rules.
These include Tencent, Baidu and Didi Chuxing, which are major Chinese technology companies.