News By/Courtesy: Parimala Ronanki | 11 Apr 2021 13:55pm IST

HIGHLIGHTS

  • china impose 2.75 billion $ for market monopoly.
  • Alibaba's response to the fine imposed by them.
  • probe's finding in the investigation.

Alibaba is a multinational technology company. It is in other words called China’s Amazon. Like amazon which is specialized in e-commerce, retail, the internet, and technology. That Alibaba, which was founded on 28th June 1999 in Hangzhou, Zhejiang, China also engaged in all these works like amazon in china. Alibaba in China is so, diverse that it provides all kind of services whether it might be business to business, customer to the business, customer to customer or sale services and not only services it divulged into web portals, electronic payment services as well as shopping search engines and cloud technology computing services. Alibaba was founded by Jack Ma. He is a very strong proponent of an open and market-driven economy that is he believes that the market should run upon supply and demand factors but that is not the way things in china work, but he continued. And now it stands among the highest global brand value alongside Apple, google, amazon, etc. Alibaba was going on a downward track since 24th December when the china government targeted Alibaba saying that it has captured the complete market that is you have captured the complete market so that is the reason the Chinese government gonna do an anti-monopoly investigation. When this news was heard by Alibaba it was a huge blow on them all the stocks of Alibaba were hit rock bottom. After the four days only, that is again on 28th December Chinese government said to the founder of Alibaba company that is to Jack Ma that to cut down the fintech empire that is the financial empire that you have brought. And the investigation that was started on December 24th came to an end. The results that came forward through this investigation was china slaps 2.8 billion yuan as a fine against market monopoly. This is the largest fine that has been imposed by the china government till now on the companies. According to the market observers, it is said that it is the highest-profile of an anti-monopoly case in china. And the total valuation of the fine was 18.9 billion yuan. Probe findings. In probe findings, china’s regulator that is SMAR said that investigation was done in such practices through which Alibaba was forcing its merchants in such a way that in two platforms any one platform is to be chosen. If it is not chosen, then some kind of penalty would be imposed. And on this probe was taking place. And the result of this probe was the Chinese government’s state administration of market regulation said that this policy stiffens the competition in the online retail market, and this gives an unfair advantage to the Alibaba group because of which other companies cannot move forward. And also said the company has to file the compliance report to SAMR for three years. Companies’ response. They said it is not a problem if the fine is imposed on us. We will accept this fine and also; we will accomplish the SAMR’s command. And Alibaba also gave a statement saying which they are thanking the Chinese government that they would not have been in this position without the government's support and the sound regulation and services. All these constituencies were crucial for our development.

 

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, 5thVoice.News shall not be responsible for any errors caused due to human error or otherwise.

Section Editor: 5thVoice.News | 12 Apr 2021 5:02am IST


Tags : #penalty#Alibaba

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