China’s top market regulator said on Friday that it has successfully guided technology giant Alibaba Group through a three-year antitrust compliance overhaul, ending the company’s monopolistic practices and boosting fair market competition in the country’s online retailing sector.
The State Administration for Market Regulation had fined Alibaba 18.23 billion yuan ($2.78 billion) for monopolistic behavior in 2021, including the company’s malpractices in forcing merchants to sell exclusively on Alibaba’s platforms.
Following the fine, Alibaba was required to conduct a thorough self-inspection, implement corrective measures, and submit annual compliance reports to the regulator for three consecutive years, the SAMR said on Friday.
“After three years, Alibaba has fully ceased its monopolistic practices. The company has taken significant steps to regulate its business practices, fulfill its responsibilities as a platform, and improve its compliance management systems,” the regulator added.
The SAMR emphasized that these changes have led to improved services for both merchants and consumers, fostering a more competitive and fair market environment.
Alibaba said the regulator’s move marked a “new starting point” for the company.
“In the future, we will continue to focus on innovation, maintain compliant operations, and increase investment in technology, to promote the healthy development of the platform economy and create more value for society,” the company said.
On Friday, the SAMR said the positive result also came as it had conducted detailed investigations and commissioned third-party assessments to evaluate the effectiveness of the company’s compliance efforts.
“Looking ahead, the SAMR will continue to guide the company in maintaining its compliance, improving operational standards, and supporting its development into a world-class enterprise,” it added.
Fan Feifei contributed to this story.