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Monday, July 22, 2024

Chinese authorities may impose record fine on Alibaba

China’s antitrust authorities are researching the prospect of fineing online retail giant Alibaba to get a record number in the nation’s historyThe Wall Street Journal (WSJreportsciting resources.  According to the paperit is going to transcend $975 million – only this kind of good was paid in 2015 from the American firm Qualcommwhich the PRC government accused of violating antitrust legislationRBC reports.

According to the paperAlibaba will likewise be asked to abandon the custom of”select one of 2“, based on thataccording to authoritiesthe firm restricted certain providers who offered goods not just on Alibaba but on rival platforms.

Additionallyregulators may need Alibaba to divest its resources unrelated to its center online retail organization.  Following the regulators eventually choose the stepsthey need to be accepted by the Chinese direction.

Alibaba and SAMR are quite on this.

On December 24Chinese authorities launched an antitrust investigation against AlibabaRegulators are looking into the company’s “forced exclusivity” policyin particularAlibaba’s requirement for partners not to work with its competitors.

Laterthe WSJ reportedciting sourcesthat the Chinese authorities decided to reduce the technological and financial business empire of the founder of Alibaba Group Jack MaAccording to themthe authorities expect to “curb” the businessmanbut at the same time maintain the innovative spirit that has fueled China’s technological and economic growth.

In early NovemberAnt Group (a division of Alibabawas supposed to go public in Hong Kong and Shanghaiwhich could become the largest IPO in historythe company could raise up to $ 34.4 billionHowevertwo days before the IPOAnt Group announced that it had received a message from regulators in China that it would be suspended “due to material issues.” The WSJ wrote that Chinese President Xi Jinping personally ordered to stop the IPOas the Chinese authorities were “furious” after the October speech of the businessmanThe newspaper also reported that the billionaire proposed to the Chinese authorities to nationalise part of Ant Group’s assetsbut this did not help prevent the cancellation of the IPO.

Ismael Brooks
Ismael Brooks
Ismael is a versatile writer contributing to City Telegraph, where their expertise spans technology and global affairs. With a passion for exploring innovation, societal trends, Ismael brings a fresh perspective to every piece they craft. Follow Ismael for thought leadership and in-depth analysis , as he continue to contribute to City Telegraph's mission of informing and engaging readers with compelling narratives.

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