China conducted contradictory investigations in Alibaba

The new investigation can be a very big thing. China’s antimonopoly law permits fines of a maximum of 10 percent of the company’s sales from the previous year, which in the case of Alibaba would be billions of dollars.

Announcing the investigation on Thursday, the Statement Administration for Market Regulations named only one particular type of anticompetitive conduct by Alibaba, which would see: Specification Agreements, described in Chinese using a phrase that “K. Translates as “two.”

There are large e-commerce sites in China Was accused for years Blocked merchants who sell on their platforms from selling to others, especially large sales events such as annuals singles Day. One of Alibaba’s main rivals, JD.com, is Fought the company In court on behavior.

Chinese appliance maker Galanz made headlines last year. Accused tamal Suppress your products in the search results of the platform after the brand Team up Along with Pindduo, a rival e-commerce company. Tmall Denied the chargesAccording to timely news reports.

Such jackfruit practice Chinese have long been common on the Internet. For example, Tencent, using its popular WeChat messaging service, will prevent people from directly opening links to Alibaba’s Taobao site – a link equivalent to Facebook will block Amazon’s links within its Messenger app.

“At a very, very macro level, it’s probably just because these companies are not competing globally,” said Rui Ma, an investor and tech analyst from China. Because Chinese Internet giants are mostly battling for advantages within the single market, “it feels like a zero-sum game,” she said.

Political insiders and investors in China have speculated over the years that the nation’s leader Xi Jinping might be tempted to step up against Mr Ma, worried that his influence was growing towards the Communist Party.

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