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China Fines Alibaba 18.228 Billion Yuan for Anti-Monopoly Violations

On April 10, 2021, the State Administration for Market Regulation imposed an administrative penalty on Alibaba Group Holding Co., Ltd. for its monopoly act of "Pick one from two" in the online retail platform service market in mainland of China. Alibaba Group was ordered to stop its illegal activities, and a fine of 4% of its total sales in China in 2019 was imposed, totaling 18.228 billion yuan.

In December 2020, the State Administration for Market Regulation filed a case investigation on Alibaba Group's abuse of market dominance in the online retail platform service market in mainland of China according to the Anti-Monopoly Law. According to investigation, Alibaba Group has abused its dominant position in the online retail platform service market in mainland of China since 2015, by forcing merchants on its platform to choose "Pick one from two", prohibiting opening of stores or participation in promotional activities on other competing platforms, and taking various reward and punishment measures to ensure the implementation of its monopoly act, so as to maintain and increase its own market share, and gain unfair competitive advantages, which constitutes the act of abuse of market dominance as prescribed in Article 17 of the Anti-Monopoly Law.

On April 10, 2021, the State Administration for Market Regulation made an administrative penalty decision according to law, ordered Alibaba Group to stop its illegal activities, and imposed a fine of 4% of its total sales in mainland of China in 2019 (455.712 billion yuan), totaling 18.228 billion yuan.

 In its response to the punishment, Alibaba said that it "sincerely accept and resolutely obey the punishment. It will strengthen its operation according to law to further construct compliance system based on innovation and development, and better fulfill the social responsibilities".