Alibaba fined $2.8 billion over Monopolistic Practices!

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Alibaba fined $2.8 billion over Monopolistic Practices

The crackdown continues for China’s Alibaba as regulators slapped a $2.8 billion fine on the conglomerate over its anti-monopoly practices by abusing its market dominance.

According to an investigation by the State Administration for Market Regulation, the e-commerce platform forced merchants to choose of two platforms instead of both and concluded that users were manipulated into using the Alibaba platform to access its huge user base.

Alibaba has in a statement accepted the penalty and promised to strengthen its innovative practices and compliance systems, read below:

“Today, we received the Administrative Penalty Decision issued by the State Administration for Market Regulation of the People’s Republic of China,” Alibaba said in a statement. “We accept the penalty with sincerity and will ensure our compliance with determination. To serve our responsibility to society, we will operate in accordance with the law with utmost diligence, continue to strengthen our compliance systems and build on growth through innovation.”

All of Jack Ma’s investments came under immense scrutiny from regulators after the former richest man in China accused regulators of having a pawnshop mentality of using collateral instead of credit ratings.

All his investments have since then received multiple lashings with the regulators pressing for Ma to divest some of his investments.