The Chinese government has taken steps to impose a hefty fine on Alibaba, one of China’s largest businesses.
The fine of US $ 2.8 billion, or 18.2 billion Chinese yuan, will be 4% of the company’s gross domestic product in 2019, according to The Verge website.
The fine was imposed in violation of Alibaba’s anti-monopoly laws or laws against the maintenance of a (trade) monopoly, and the Chinese government has been investigating since December last year.
These investigations have revealed that Alibaba has blocked sellers who join them from using other platforms such as Alibaba and their platforms.
Alibaba has maintained a market monopoly, which has caused significant damage to the growth of other platforms and their innovations, according to the State Trade Regulatory Authority of China.
Alibaba said in a statement that it was prepared to comply with the ruling and pay the fine in the future.
However, Alibaba’s net profit for the last three months of 2020 alone was $ 12 billion.