China has slammed Alibaba, one of South Africa's largest internet retailers, for an estimated $ 2.8 billion (18.2 billion yuan), following an investigation into the e-commerce giant's violation of China's anti-independence law, the New York Times reported. The fine, which represents 4 percent of Alibaba's home sales in 2019, is three times higher than the $ 975 million fine imposed on China by US chip company Qualcomm back in 2015.
The Chinese government launched an investigation into Alibaba in December to find out if the company is blocking retailers from selling their products on other platforms. China's market regulator has found that Alibaba's practices have had a negative impact on online retail competition and innovation. Alibaba has used data and algorithms to strengthen its market position, which has led to "unfair competitive advantage," China State State for Market Regulation said in a statement. The company will have to reduce its competition strategies and provide compliance reports for the next three years.
Alibaba said in a statement that he accepted the fine and promised to do better to better serve his "public responsibility".
"We will continue to strengthen our focus on customer value creation and customer experience, as well as continue to introduce ways to reduce entry barriers and business costs operating on our foundations," reads a company statement. "We are committed to ensuring a working environment for our vendors and partners that is more open, more equitable, more efficient, and more inclusive in sharing the fruits of growth."
A large fine would not seriously hurt Alibaba’s line, however; In February, the company reported a third-quarter profit - in the last three months of the 2020 calendar year - of $ 12 billion.
Correction: The previous version of this story had an incorrect number of good China given to Qualcomm. It was $ 975 million. We regret the mistake.
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