Xi smashes Jack Ma’s empire: China regulator fines Alibaba $2.8 billion for antitrust violations
10 April, 2021 | Rakshanda Afrin
The Chinese Communist Party’s has issued a RMB 18.2 billion ($2.8 billion) fine on the e-commerce giant, Alibaba nearly four months after launching an investigation in December last year.
The Chinese Communist Party’s crackdown on Alibaba has issued a RMB 18.2 billion ($2.8 billion) fine on the e-commerce giant. Alibaba Group, founded at Hangzhou in China, is a multinational conglomerate holding company specializing in e-commerce, retail, internet, and technology. The founder Jack Ma of the e-commerce giant is considered one of Asia’s richest men. Ma had after two decades of building Alibaba turned it into an e-commerce powerhouse worth over $460 billion.
What makes this fines as the record penalty on Alibaba will be highlighting Beijing’s continued efforts to curb anti-competitive practices at major tech firms. The latest Communist Party’s crackdown on Alibaba and its three largest rivals already made them shed nearly $200 billion in Hong Kong. Major corporations are driven by fears that antitrust scrutiny will spread beyond Jack Ma’s internet empire putting under the radar China’s most powerful corporations.
China’s top market watchdog released a statement stating that it has issued a RMB 18.2 million fine on Alibaba, nearly four months after launching an investigation in December last year. Once applauded as the torchbearers of China’s economic and technological top players, Alibaba and its contemporaries are now face increasing pressure from investor regulators. It seems the CCP is increasingly getting worried about the speed with which they are spreading across several verticles like media and education and subsequently gaining influence over the daily lives of hundreds of millions.
Last year China has halted Ant Group Co.’s $35 billion share sale in Shanghai and Hong Kong after Alibaba Group Co-founder Jack Ma had called out the Chinese government over the financial system. The Chinese government has cited “major issues” for suspending the world’s largest IPO debut.