Exterior of the Alibaba Group headquarters in Beijing on November 10, 2019 in Beijing, China.
VCG | Visual China Group | Getty Images
Chinese regulators hit Alibaba with a fine of 18.23 million yuan ($ 2.8 billion) in its antitrust investigation into the technology giant.
In a statement on Saturday, the Chinese State Administration for Market Regulation accused Alibaba of abusing its market dominance.
Regulators opened an investigation into the company’s monopolistic practices in December. The main focus of the research was a practice that forces traders to choose one of the two platforms, rather than being able to work with both.
The agency said the policy stifles competition in China’s online retail market and “infringes on the business of platform traders and the legitimate rights and interests of consumers,” according to a CNBC translation of a statement in Chinese .
The government said the policy of “choosing one” and others allowed Alibaba to strengthen its market position and gain unfair competitive advantages.
“Alibaba sincerely accepts the sentence and will ensure its compliance with determination,” Alibaba said in a statement. “To fulfill its responsibility to society, Alibaba will operate in accordance with the law with the utmost diligence, continue to strengthen its compliance systems and build on growth through innovation.”
The company added that it will hold a conference call on Monday at 8 a.m. Hong Kong time to discuss the fine.
The announcement is the latest development in China’s crackdown on its technology companies. Regulators have been increasingly concerned about the power of China’s technology giants, particularly those operating in the financial sector.
This is breaking news. Please check for updates again.
– CNBC’s Arjun Kharpal, Evelyn Cheng and Eunice Yoon contributed to this report.