News: China’s antitrust regulators weigh levying record fine on Alibaba: WSJ.
(Reuters) – China’s antitrust authorities are considering imposing a record fine on Alibaba Group Holding Ltd for alleged anti-competitive behavior, the Wall Street Journal reported Thursday, citing people familiar with the matter.
The fine could exceed the $ 975 million Qualcomm paid in 2015 for anti-competitive practices, the report said. Regulators are also looking into whether the Chinese e-commerce giant should divest some assets unrelated to its main online retail business.
Alibaba declined to respond to a Reuters request for comment.
Founder Jack Ma’s business empire was subjected to intensive scrutiny by the Chinese regulatory authorities in late October after its sharp criticism of the Chinese regulatory system.
At the end of December, the Chinese Market Authority announced that it had opened an antitrust investigation in Alibaba.
That news came after Beijing authorities halted a planned $ 37 billion initial public offering of Ant Group, Alibaba’s internet finance division.
The company has come under fire from competitors and sellers in the past for allegedly banning its merchants from listing on other e-commerce platforms. This practice is known as “Two-Choose-One”.
Alibaba’s Hong Kong stocks rose 1.7% Friday morning after New York stocks rose 2.8% overnight during a broad stock market rally. New York stocks are still about a quarter lower than they were in October.
Reporting by Akanksha Rana in Bengaluru and Josh Horwitz in Shanghai; Arrangement by Vinay Dwivedi and Muralikumar Anantharaman
Original Source © Reuters