Jack Ma’s Alibaba Fined USD 2.8 Billion; Company Thanks Chinese Regulators For It

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Alibaba, Jack Ma, and the Chinese regulation authorities seem to be stealing the spotlight. Alibaba Group Holding Ltd. has been fined by the Chinese regulators for violating the monopoly laws. As a response to the massive fine of CNY 18.23 billion or USD 2.78 billion, Alibaba has thanked the regulators.

Jack Ma’s Alibaba Thanks Regulators After Being Fined

 

Alibaba Fined By Regulators

The clash between Alibaba or rather its founder Jack Ma with the Chinese authorities has been going on for a while now. Jack Ma, who's one of the most outspoken voices in China, had been missing for a while until he mysteriously arrived at one of the events. However, things haven't been all agreeable as the latest reports suggest.

The Chinese regulators put a record fine on Alibaba Group for violating anti-monopoly laws on Saturday, April 10. The fine amount of USD 2.7 billion is the largest anti-monopoly fine ever granted by the Chinese authorities. According to the Xinhua news agency, the fine is equal to four percent of Alibaba's sales in 2019.

Jack Ma’s Alibaba Thanks Regulators After Being Fined

The fine was imposed after an investigation by Chinese regulators, who found an "exclusive dealing agreement" that violated the monopoly laws in China. In fact, the authorities have said that Alibaba 'abused' its dominant position in the market since 2015.

Alibaba Responds With Gratitude

While the massive fine came as a shocker to most of the world, Alibaba has released an official statement. What may sound absurd, the e-commerce conglomerate has thanked the Chinese regulators with much gratitude for the anti-trust fine.

Jack Ma’s Alibaba Thanks Regulators After Being Fined

 

"Alibaba would not have achieved our growth without sound government regulation and service, and the critical oversight, tolerance, and support from all of our constituencies have been crucial to our development. For this, we are full of gratitude and respect," Alibaba said in an open letter.

That said, the entire ordeal might not be that surprising for many who are close with the matter. "We're happy to get the matter behind us. These regulatory actions are undertaken to ensure fair competition," said Joseph Tsai, co-founder and vice-chairman, at an investor call.

Jack Ma’s Alibaba Thanks Regulators After Being Fined

If the letter of gratitude may seem absurd, let's take a look at the fine amount. For a company that's massive as Alibaba, the USD 2.8 million is less severe, especially lesser than the amount many had feared. As mentioned, it's just four percent of the 2019 sales, making it quite a meager amount. Alibaba now holds the highest fine, which was previously held by Qualcomm for almost USD 1 billion.

Alibaba Regulation Vs Facebook, Google

The Chinese regulation might seem absurd to many, especially the regulatory authorities in the US or Europe. For one, the entire anti-trust investigation against Alibaba was done in just four months, where it would normally take years for such investigations in the US or Europe.

We've seen several anti-trust lawsuits and investigations against internet giants like Facebook, Amazon, Google, and even Apple. However, none of these companies have come out to thank the regulators for the fine imposed! Alibaba's gratitude has made the investigation one of the most out-of-the-ordinary reactions. The company also said it would bring a change to its strategy and structure.

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