The Chinese government fined the world’s largest e-commerce company Alibaba more than 18 billion yuan, or more than Rs 20,500 crore, on charges of violating the anti-trust law. China’s market regulator State Administration for Market Regulation (SAMR) found Alibaba Holdings guilty of anti-monopoly violations and imposed such a hefty penalty on the company.
Alibaba CEO said on Monday that the penalty imposed by China on Alibaba will not affect the company. At the same time, the sword of uncertainty rested on the company, which led to a huge jump in the stock of Alibaba on the Hong Kong Stock Exchange today. The company’s shares climbed to 9%, the biggest single-day jump in the past 3 months.
A 9% jump in Alibaba’s stock has increased the company’s market value by $ 48.5 billion, or Rs 3.63 lakh crore. The company’s total M-cap is now 4.99 trillion Hong Kong dollars. The Chinese government accused Alibaba that Jack Ma-owned company, Alibaba, used its dominance to monopolize the Chinese market and took advantage of it unfairly.
These are allegations
Let us tell you that SAMR started investigation in December 2020 against the other companies of Jack Ma along with Alibaba and Ant Group under the anti-trust law. SAMR reported that the company prevented merchants selling goods on its platform from moving to other e-commerce platforms, which violates merchants’ rights to trade products in China for free trade.
Alabab had placed a condition in front of the traders trading on its platform that if they were to do business with Alibaba, they would not have to do business with any other company. China called it a violation of the anti-monopoly law. Alibaba has admitted its mistake and has accepted the decision of SAMR. The company said that it would also follow the order of SAMR and promote corporate governance.
This is how the case started
Indeed, Jack Ma, the founder of the Alibaba Group, criticized the country’s financial regulators and state-owned banks in a speech in Shanghai in October 2020. Ma had called for reforms in the system and called the Global Banking Regulation a club of old people.
This criticism of Jack Ma led to the Jinping government of China exasperating. This was followed by the suspension of Jack Ma’s Ant Group’s $ 37 billion IPO in November 2020. Since then, the Chinese government has been clamping down on Jack Ma. Jack Ma’s companies have incurred huge losses. The company’s shares have broken more than 30% since November. But today there has been a boom in it.
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