New Delhi: It seems that Chinese President Xi Jinping has lost his hands behind Chinese businessman Jack Ma. After imposing various restrictions, the Chinese government has now taken major action against Jack Ma’s company Alibaba in violation of Anti-Monopoly Rules. China has imposed a fine of $ 2.78 billion on the giant Alibaba Group. It is considered to be the biggest action against Alibaba so far.
Fines equal to 4% of the company’s revenue
According to international media reports, Chinese regulators say that the Alibaba Group has not only violated anti-monopoly rules, but has also misused its credibility in the market. Therefore, a penalty of 18 billion yuan ($ 2.75 billion) has been imposed against the company. This amount of fine is equal to about 4% of the revenue earned by Alibaba in 2019. Please tell that Jack Ma had criticized the policies of the government last year, since then he has come under the target of the Chinese government.
IPO was rejected earlier
Alibaba’s problems started increasing in December last year. When the Chinese government ordered an investigation on Alibaba Group regarding the misuse of monopoly i.e. monopoly. According to the State Administration of Market Regulation i.e. SAMR, an investigation was started against Alibaba in the practice of ‘choosing one of the two. This was seen as a major setback for Jack-Ma’s e-commerce company and Fintech Empire.
China’s official news agency Xinhua reported in December last year that the regulator had found the Alibaba Group accused of misusing monopoly for a special dealing agreement. The regulator had told that in the coming days, notice will also be sent to Jack-Ma’s company Ant Group. Let me tell you that only last month, the Chinese government dramatically rejected Ant Group’s $ 37 billion IPO.
