Chinese regulators have fined Alibaba a record RMB 18.2 billion after finding that the e-commerce group had abused its market dominance, reported the Financial Times.
The $2.8 billion penalty, which was set at 4% of Alibaba’s 2019 revenues, concludes an antitrust investigation into the company founded by Jack Ma. It comes as Chinese authorities have stepped up scrutiny on deal making and anti-competitive practices in its once lightly regulated technology sector.
The market regulator said that since 2015 Alibaba had forced merchants to sell exclusively on its Tmall and Taobao online shopping platforms, reported the FT.
Alibaba used its “market position, platform rules and data, and algorithmic methods” to put in place rewards and punishments for its “choose one of two” policy, the regulator said on Saturday.