China Imposes 3.1124 Trillion KRW Fine on Alibaba... Largest Ever

China Market Supervision Administration, Abuse of Market Dominance by Forcing 'Choose One'
Separate Administrative Measures for Internal Compliance and Consumer Legal Rights Protection Also Implemented

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Alibaba Group, China's largest e-commerce company, has been fined approximately 3 trillion KRW.

On the morning of the 10th, major Chinese media outlets including People's Daily, Xinhua News Agency, Pengpai, and Caixin simultaneously reported that Alibaba was fined 18.228 billion yuan (approximately 3.1124 trillion KRW). This is the highest fine ever imposed by Chinese authorities for violating antitrust laws.

[Image source=Yonhap News]

Chinese media reported that the State Administration for Market Regulation conducted an antitrust investigation on Alibaba and found that since 2015, Alibaba had unfairly forced market participants to "choose one of two options," violating antitrust laws. Chinese media explained that this constituted an abuse of market dominance.

People's Daily stated that businesses abusing monopolistic market positions can be fined between 1% and up to 10% of their previous year's revenue, and that the fine imposed on Alibaba this time amounts to 4% of its 2019 revenue.

Economic media outlet Caixin reported that, according to Articles 47 and 49 of the Antitrust Law, the State Administration for Market Regulation imposed the fine on Alibaba today, and along with the fine, issued administrative penalties requiring Alibaba to strengthen internal compliance, maintain fair competition, and protect consumers' legal rights and interests.

This content was produced with the assistance of AI translation services.