China’s top market regulator said on Friday that it has successfully guided tech giant Alibaba Group through a three-year antitrust compliance overhaul, ending the company’s monopolistic practices and boosting fair competition in the country’s online retailing sector.
The move came as the State Administration for Market Regulation fined Alibaba 18.23 billion yuan ($2.78 billion) for monopolistic behaviors in 2021, including the company’s malpractice in forcing merchants to choose selling on Alibaba’s platforms or those of its competitors.
Following the fine, Alibaba was required to conduct a thorough self-inspection, implement corrective measures, and submit annual compliance reports to the SAMR for three consecutive years, the market regulator 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 SAMR said.
It emphasized that these changes have led to improved services for both merchants and consumers, fostering a more competitive and fair market environment.
Alibaba said in a reply that the 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 also noted that such a positive result came as the market regulator has 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 the story.