China imposes penalty on Alibaba for anti-monopoly violations
On November 20, e-commerce giant Alibaba and a number of corporations were hit with serious fines for antitrust violations. The investigation was initiated by the State Anti-Monopoly Bureau of China, which was established on November 18. The agency has fined several of China's largest companies, including Alibaba and Tencent, saying that they violated anti-monopoly legislation. According to the regulator's reports, 43 cases have been filed on the issue. These involve cryptocurrency transactions as well as mergers and acquisitions of companies that were not disclosed to the authorities. Based on the results of the investigation, China's State Administration for Market Regulation imposed an administrative penalty on Alibaba Group. The company will have to pay a fine of 500,000 yuan ($78,200). Among the companies that got under scrutiny are Alibaba Group, internet giant Tencent Holdings, one of the largest retailers Suning, transportation company DiDi, and search engine giant Baidu. China’s government has now stepped up antitrust enforcement activities. In April 2021, China's State Administration for Market Regulation slapped a record 18.34 billion yuan ($2.78 billion) fine on Alibaba, also for a violation of the antitrust law. Last month, Chinese authorities levied a 3.44 billion yuan (about $533 million) fine on food delivery company Meituan for a similar offense.