Alibaba Hit with Billion Yuan Fine: Triumphs in Landmark Monopoly Lawsuit

Alibaba Group Holding Ltd. Sponsored ADR +0.28%, Inc. Sponsored ADR Class A +0.20%

Alibaba Group Holding Ltd. Sponsored ADR



+0.28%, Inc. Sponsored ADR Class A




Alibaba Group Holding Limited (NYSE:BABA), along with Zhejiang Tmall Network Co and Zhejiang Tmall Technology Co, was fined 1 billion yuan ($140.68 million) for monopolistic practices, as ruled by the High People's Court of Beijing. 

This decision resulted from a lawsuit won by Chinese online retailer Inc (NASDAQ: JD) against its rival Alibaba. 

The court found that Alibaba had abused its market dominance by engaging in a practice known as "choosing one from two," which severely harmed, Reuters reports.

In a statement published on its official WeChat account, hailed the ruling as a significant moment in China's anti-monopoly legal process and a step towards upholding market fairness and competition through the rule of law. 

This legal setback for Alibaba comes after Chinese regulators fined a record $2.75 billion in 2021 in an anti-trust probe. 

The probe found that Alibaba had similarly abused its market dominance. The contentious practice of "choosing one from two" involves compelling brands and merchants to operate exclusively on one platform, in this case, Alibaba's, if they wish to do business with them. and Alibaba, two of China's e-commerce giants, have previously criticized each other for engaging in this exclusive practice. 

However, Alibaba has not immediately responded to requests for comment regarding the recent court ruling and the fine imposed.

Price Actions: BABA shares traded higher by 0.09% at $77.31 on the last check Friday. 

Also Read: Alibaba Faces Continued Legal Battle Over Counterfeit Sales on Its Platform, Despite 'Three-Strike' Policy

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Wikimedia Commons

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