Alibaba Fined 💸

Table of Contents

Alibaba Fined  

In January, Jack Ma, CEO of Chinese e-commerce giant Alibaba, made his first appearance in public view since going dark for three months. Ma disappeared after Chinese regulators began investigating Alibaba in December for alleged anti-competitive behavior. Regulators were looking to see if the company was preventing sellers from selling their products on rival e-commerce platforms — it looks like regulators have finally found what they’re looking for.

On Saturday, Chinese state media reported that Alibaba had been slapped with a record $2.8 billion fine. The fine comes after regulators concluded Alibaba was engaging in anti-competitive behavior, acting like a monopoly.

In recent months, Beijing has strengthened its grip on China’s national tech giants as part of a regulatory crackdown on online companies that President Xi Jinping says is key to maintaining social stability. 

Alibaba is arguably one of China’s most successful private businesses, and Jack Ma is arguably China’s most famous billionaire. By making an example out of such a distinguished business, Chinese regulators are sending a strong message to the country’s powerful tech companies.

The record fine is equal to 4% of Alibaba’s domestic sales in 2019, and it breaks the previous record fine of $975 million to American chipmaker Qualcomm in 2015. In a statement, Alibaba said they accepted the $2.8 billion fine and will improve.

As China’s tech companies continue to grow into behemoths, Chinese regulators are becoming very concerned about the power these companies have. Alibaba isn’t the first and likely won’t be the last Chinese tech giant to face scrutiny from Chinese regulators.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.