Alibaba's record fine is a 'warning shot' in China's tech crackdown
CNN
Alibaba is trying to draw a line under accusations that it behaved like a monopoly after Chinese regulators hit the online shopping giant with a record fine over the weekend. But that doesn't mean the crackdown on tech in China is over yet.
Joe Tsai, Alibaba Group's co-founder and executive vice chairman, told investors on Monday that the company will not appeal the 18.2 billion yuan ($2.8 billion) penalty that China's State Administration for Market Regulation (SAMR) imposed on the business. Regulators had investigated Alibaba (BABA) for "exclusive dealing agreements" that prevented merchants from selling products on rival e-commerce platforms — a practice known as "choosing one from two." "With this penalty decision, we've received a good guidance on some of the specific issues under the anti-competitive law," Tsai said on the investor call. "We are pleased we are able to put this matter behind us." The company has promised to case the "exclusive dealing" practice.More Related News