Chinese regulators slapped online retailer Alibaba with an 18.2 billion yuan ($2.8 billion) fine for behaving like a monopoly.
An antitrust investigation was launched in December into Alibaba’s “exclusive dealing agreements.” The agreements kept merchants from selling products on other e-commerce platforms, a practice known as “choosing one from two,” according to CNN.
According to state news agency Xinhua, the fine was equivalent to 4% of Alibaba’s sales in China in 2019. It is the most significant penalty ever leveled against a company. The previous record fine of $975 million was given to Qualcomm in 2015.
The company said in a statement Saturday that it accepts the penalty.
“Alibaba would not have achieved our growth without sound government regulation and service, and the critical oversight, tolerance, and support from all of our constituencies have been crucial to our development. For this, we are full of gratitude and respect,” the statement read.
“It is not lost on us that today’s society has new expectations for platform companies, as we must assume more responsibilities as part of the nation’s economic and social development.”
The penalty is the latest development in China’s attempt to crack down on technology companies. There has been growing concern over the influence tech firms have over the financial sector. Other tech companies could soon find themselves under the microscope.
