Chinese authorities have sanctioned the e-commerce giant Alibaba with a maxi-fine of 18.2 billion yuan (2.78 billion dollars) for abuse of dominant position. The colossus founded by Jack Ma announced that it had accepted the sanction and pledged to outline plans to make its operations compliant on Monday.

Beijing’s war on founder Jack Ma

This is just the latest episode of a long war between the Chinese billionaire and the Beijing authorities: a few months ago, the listing of Ant, the financial branch of Alibaba, which became a giant of electronic payments in a short time, was blocked 24 hours after the debut on the Shenzen and Shanghai stock exchanges. The fears of the Chinese authorities centered on Ant behaving like a real one without having the legal status, thus escaping the control of the Party-State.

The fine equal to 4% of Alibaba’s 2019 revenues

The fine, which equates to approximately 4% of the company’s revenues in 2019, the largest antitrust authority ever imposed in China and comes within the framework of tight control launched in recent months in recent months on the hi-tech giants. The State Administration for Market Regulation (Samr), theChinese antitrust, explained in a statement that an investigation launched in December found that Alibaba has been abusing its market dominance since 2015.
Alibaba, together with Tencent, one of the Chinese e-commerce giants in the sights of the Beijing authorities, a squeeze that was also linked to the criticisms launched last October by its founder, the tycoon Jack Ma, against the financial control system of the Country. In December 2020, Samr announced the opening of an antitrust investigation into the company and in the same month, as mentioned, it suspended the 37 billion dollar maxi-IPO of Ant Group, the fintech subsidiary of Alibaba. After the decision, manager Jack Ma, the richest man in China, had long been away from the spotlight and from public occasions.

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