The report further stated that China’s State Administration for Market Regulation (SAMR) declared that the policy “infringes on the businesses of merchants on the platforms and the legitimate rights and interests of consumers.”
In addition to the fine, regulators ordered the company to file self-examination and compliance reports to them for three years. The fine is roughly equivalent to 4% of Alibaba’s 2019 revenue.
Alibaba publicly signalled acceptance of the penalty and that it would comply with the regulators’ demands, saying that it wouldn’t have achieved growth “without sound government regulation and service.”
The company along with sister firm Ant Group have weathered considerable scrutiny from the Chinese government ever since their founder, Jack Ma, made critical remarks about the country’s regulatory system. Ma has largely stayed out of public view, only resurfacing briefly in January to address a group of teachers.