Alibaba will be punished; Other tech companies will be notified
In its recent effort to get China’s technology industry going, the Chinese government’s State Government of Market Regulation (SAMR) has done so raised a record $ 2.8 billion fine on Alibaba for antitrust violations. Joe Tsai, Executive Vice Chairman of Alibaba, said investors that the company would not appeal the fine, which represents 4 percent of the company’s domestic sales in 2019.
After months of pressure from the central government, Alibaba announced on April 12th that it will apply to become a financial holding company. With the new name, Alibaba will be subject to the stricter regulations imposed on traditional Chinese banks, including requirements for higher capital and less risky assets. It will also force Alibaba’s hand in exchanging data with the government, a point where the company tore its feet apart.
SAMR, the Chinese government’s antitrust watchdog, recently called 34 Building services …