Jack Ma’s Alibaba Group, the world’s greatest e-commerce company got massively fined by China’s regulator on Saturday. A record sum of $2.75 billion fine was imposed on the company for violating anti-monopoly laws and taking advantage of its dominant market position, marking the highest antitrust fine ever, Reuters reported.
Alibaba’s richest founder Jack Ma’s Company has been specially put under severe scrutiny following his strong criticism of China’s regulatory system in October 2020.
The move is another jolt for Alibaba and its founder Jack Ma, following a decision by Chinese regulators to waive the stock market debut of Ant Group, a money platform expounded from the e-commerce goliath. It would have been the globe’s biggest initial government stock contribution in 2020.
China’s Regulators stated in December 2020, that it started an antitrust inquiry into Alibaba. That was announced after authorities scrambled a purposed $37 billion IPO from Ant Group, Alibaba’s online finance unit.
They likewise declared their primary rival, JD.com, and four other online companies were ordered to meet and were given a warning not to utilize their market power to keep out new contenders.
The SAMR likewise summoned Alibaba to perform precise ratifications to guard consumer rights and fortify internal compliance.