China..a new round of sanctions against Alibaba and giant companies

Today, Saturday, the Chinese State Administration for Market Regulation imposed a fine on Alibaba Group, Tencent Holdings, and Baidu, amounting to 21.5 million yuan ($ 3.4 million), in the latest round of sanctions and measures. Strict for freedom of competition and monopoly prevention.

The administration in charge of monitoring freedom of competition said the three companies must pay 500,000 yuan ($78,000) for each of the 43 antitrust violations.

Last March, Chinese President Xi Jinping announced his intention to pursue “platform” companies that collect data with the aim of monopoly.

Beijing has strengthened antitrust supervision and control in China’s vast private sector, particularly in the virtual world.

The Chinese government canceled what would have been a record IPO of Alibaba’s financial arm Ant Group and fined Alibaba a record $2.8 billion over practices deemed anticompetitive.

Leading food delivery app Meituan was fined $533 million last month for violating antitrust rules.

Big drop in Alibaba profits

And Alibaba announced, Thursday, that its profits in the last quarter fell by 81%, due to the impact of the authorities targeting giant technology companies.

Alibaba reported profits of 5.37 billion yuan ($833 million) for the July-September period, compared to 28.77 billion yuan in the same period last year.

Alibaba’s revenue represents an important measure of the performance of the country’s largest companies in light of the government’s move to rein in technology giants.

In the past, China’s ruling Communist Party relied on these companies to advance the country’s digital transformation.

But it suddenly turned against the sector last year, as concern about data security grew, its massive expansion and accusations of monopolistic practices similar to that prevailing in the United States and other countries about technology companies. Alibaba was among the first companies affected by the move.

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Reference-www.aljazeera.net

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