Beijing is cracking down on e-commerce giant Alibaba owned by local tycoon Jack Ma. The authorities are planning to hit his business empire with a record fine of almost $1 billion. This is the way Beijing wants to struggle against freethinking among local entrepreneurs. The government toughened its stance on Alibaba founder and CEO after he dared to toss critical public comments on the People’s Bank of China. He targeted China’s central bank for a “pawn shop” mentality. Following such bold remarks, the largest in China online retailer owned by Jack Ma immediately came under scrutiny of the financial watchdog. China’s State Administration for Market Regulation launched an investigation into Jack Ma’s business which ended up with a jaw-dropping fine of $975 million.

The antitrust authorities made a ruling for such a severe penalty on the grounds of unfair competition. Under Alibaba’s internal code, the company “punishes” sellers who offer their merchandise on other websites in parallel, imposing some restrictions on them. Interestingly, though this rule has been valid for a long time, it has not aroused questions from Chinese officials.

The underlying reason for this crackdown is that Beijing sends a clear message to local businesses. A firm of any size and sector must follow the course pursued by the Communist party. Any deviation or brickbats at civil servants will be terminated and penalized. Foreign investors and local entrepreneurs used to voice concern over the lack of transparency and the official rhetoric against unconventional ideas. Jack Ma’s case proves that the government has tightened its supervision. Many successful businessmen found an excuse to leave their homeland.