Exterior view of the Beijing headquarters of Alibaba Group on November 10, 2019 in Beijing, China.
VCG | Visual China Group | Getty Images
Chinese regulators fined Alibaba 18.23 billion yuan ($ 2.8 billion) in the tech giant’s antimonopoly investigation.
In a statement on Saturday, the Chinese market regulation administration accused Alibaba of abusing its market dominance.
Regulators launched an investigation into the company’s monopoly practices in December. The main focus of the research was on a practice that forces traders to choose one of two platforms rather than being able to work with both.
The agency said these policies hampered competition in China’s online retail market and “violated retailers’ businesses on the platforms and the legitimate rights and interests of consumers,” according to a CNBC translation of a Chinese-language statement.
The government said the “choose one” policy and others allowed Alibaba to strengthen its position in the market and gain unfair competitive advantage.
“Alibaba sincerely accepts the punishment and will ensure that the resolve is respected,” Alibaba said in a statement. “In order to live up to its responsibility to society, Alibaba will act with the greatest care in compliance with the law, further strengthen its compliance systems and build on growth through innovation.”
The company added it would hold a conference call at 8 a.m. Hong Kong time on Monday to discuss the fine.
The announcement is the latest development in China’s crackdown on its technology companies. Regulators are increasingly concerned about the power of China’s tech giants, especially those in the financial sector.
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– CNBC’s Arjun Kharpal, Evelyn Cheng and Eunice Yoon contributed to this report.