China’s antitrust authorities are set to fine e-commerce giant Alibaba for the largest amount in the country’s history. This was reported by The Wall Street Journal.
According to the sources of the publication, the Chinese authorities intend to recover more than $ 975 million, which the American Qualcomm paid in the country in 2015.
Alibaba, according to regulators, is fighting unfairly with competitors. The company “punishes” sellers who list their products on multiple platforms. So, Alibaba restricts the promotion of their products on their sites, thus forcing them to make a choice in their favor. The regulator will require an end to this practice.
Earlier, amid the war between the Chinese authorities and Alibaba founder Jack Ma, entrepreneurs feared that this could slow down Beijing’s movement towards the status of a world leader in technology. Investors and businesses are concerned about the lack of transparency and the harsh crackdown on dissent.
The reason for the enmity, due to which the Chinese authorities blocked the initial public offering of shares of Ant Group (a subsidiary of Alibaba), could be an investigation into the possible beneficiaries of the transaction. Among them were people associated with political clans that are displeasing to the current government. In February, Ant Group and Chinese regulators agreed on a restructuring plan that will turn the company into a financial holding.