Chinese tech giants are facing pressure after “Alibaba” is fined $ 2.78 billion

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Chinese authorities imposed a heavy fine on Alibaba e-commerce group of 18.2 billion yuan ($ 2.78 billion) for abuses related to its dominant position, according to what was reported by official Chinese media yesterday.
According to the New China News Agency, this fine was imposed after an investigation that began against “Alibaba” in December, according to “French.” The site was accused of imposing exclusivity on merchants wishing to sell their products on its platform and avoiding dealing with competing e-commerce sites.
“Since 2015, the Alibaba Group has exploited its dominant position in the market to obtain an unfair advantage through exclusive opportunities, and this behavior has restricted competition and innovation in the sector and violates the rights and interests of companies and consumers,” the regulatory authority said.
The value of this fine is record, as it is equal to three times the fine of nearly one billion dollars imposed on the US giant “Qualcomm” in 2015, according to “Bloomberg” financial agency. The penalty value was determined after the regulatory authorities decided to impose a fine on the site equivalent to 4 percent of its 2019 revenue, or 455.7 billion yuan.
Alibaba Group commented in a statement on the social networking site, saying, “We sincerely accept this punishment and will strictly comply with it,” pledging to make its activities in compliance with the laws and to “better shoulder its social responsibilities.”
The Alibaba Group and other Chinese tech giants are facing pressure as concerns over their influence in China grow, as consumers use these pioneering platforms to communicate, shop, pay bills, book taxis, take out loans and a host of other daily tasks.
Alibaba, in particular, has been subject to intense follow-up since last October, as its co-founder Jack Ma accused the regulatory bodies of not keeping pace with the developments taking place, for expressing concern about the expansion of Alibaba’s financial arm, Ant Group, in the areas of loans, asset management and insurance. .
China is seeking to curb personal debt and messy loans and has promised Ant Group’s growing importance, as well as the rare official criticism of Jack Ma, as a challenge to the country’s state-dominated financial arena.
The e-commerce groups “Alibaba” and “JD.com” as well as the giant “Tencent” company for messaging and games have benefited from the growing use of digital means in the lives of the Chinese and the government banning the main American companies competing in the internal market to become one of the most valuable companies in the world.
Before announcing the imposition of a fine yesterday, the Chinese punishment had already cost Alibaba and Jack Ma dearly. In November, Chinese regulators suspended at the last minute a massive $ 34 billion IPO for Ant Group, a branch of Antigroup. Alibaba to pay online, and has ordered it to return to its core competencies as a provider of online payment services.
Big tech stocks faced intensified oversight of major technology platforms.
The Wall Street Journal reported last month that Alibaba Group had also come under pressure to dump a wide range of media assets, including a possible sale of the South China Morning Post in Hong Kong.
On the other hand, the National Health Commission in China announced yesterday that the Chinese mainland had not recorded any new local cases of infection with the new Corona virus, which causes Covid-19 disease, yesterday.
The committee added in its daily report, reported by the New China News Agency, “Xinhua”, that 14 new imported cases of COVID-19 were recorded on the Chinese mainland on Friday, including four in Shanghai, two in Fujian, and one each in Beijing, Shanxi, Liaoning, Zhejiang and Shandong. Hubei, Yunnan and Shaanxi.
The report stated, that no new suspected cases of Covid-19 or new deaths related to the disease were recorded on Friday. The report continued, that ten patients with Covid-19 were discharged from hospitals yesterday after their recovery. A total of 5,411 imported cases were recorded on the Chinese mainland by the end of Friday, including 5,212 cases that were discharged from hospitals after recovering and 199 cases were still receiving treatment.
No deaths related to the disease were recorded among the imported cases, and the total number of confirmed cases of COVID-19 on the Chinese mainland reached 90,400 as of Friday, including 283 cases still receiving treatment, three of them serious. As of Friday, a total of 85,481 cases had been discharged from hospitals after recovering on the Chinese mainland, while 4,636 people had died as a result of the disease.





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