China denies plans to recover $ 1 billion Alibaba

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China on Friday denied that it was planning to kill e-commerce giant Alibaba with a record of nearly $ 1 billion for allegedly flouting monopoly rules, as authorities pressured the country’s vast technology sector Was increased.

China’s largest online shopping portal, Alibaba, has been in the crosshairs of authorities in recent months regarding its accessibility to the daily finances of ordinary Chinese people.

The market regulator denied that the company was planning to pay a fine of about $ 1 billion for anti-competitive behavior, as reported by the Wall Street Journal, which cited unnamed sources linked to the case.

However, on Friday it killed 12 other tech firms, including giants Tencent, Baidu and ByteDance – symbolic penalties for violating monopoly rules.

Also read China issues new anti-monopoly rules targeting its tech giants

The state administration said in a statement on Friday that Tencent was fined $ 77,000 for its 2018 investment in online education app Yuanfudo.

Search giant Baidu will have to pay the same amount in 2014 to get consumer electronics manufacturer Ainemo under the radar.

Beijing has warned that it will take a callous approach to antitrust questions.

Premier Li Keqiang said last week that the government would “strengthen anti-monopoly laws” and “prevent the disorganized expansion of capital”.

Analysts said Friday’s dismissal gives a strong indication of the Communist Party’s dominance over the country’s technical landscape.

“These penalties send a message: The economy and everything within it must follow the state’s directives,” Alex Capri, a senior fellow at the National University of Singapore’s business school, told AFP.

Also read Control of ‘resonance of data’ behind Alibaba’s feud with authorities

Capri said the hefty rules would curb the ability of tech firms to be affected by market share and uncontrolled acquisitions. – Alibaba’s havoc –

The ongoing squeeze on Alibaba – one of China’s most influential companies – is the latest sign that the leadership is set to defy the ambitions of large tech firms in a fugitive Internet sector.

The Wall Street Journal reported on Thursday that officials are considering a hefty fine against the company, which could top $ 975 million paid in 2015 by US chipmaker Qualcomm – the largest for antichromatic practices in China Known penalty.

But the regulator in charge of the case told AFP that there is no truth in the story.

“If it is not (on our website), it is not (true),” said a spokesperson for the State Administration for Market Regulation.

Nevertheless, the company faces legal troubles. The problems began following comments in October by billionaire founder Jack Ma, which he put into China’s steadfast regulatory system.

In November, financial regulators pulled the plug on Alibaba’s online payment subsidiary Ant Group’s record $ 35 billion Hong Kong-Shanghai initial public offering.

A month later, authorities opened an investigation into Alibaba’s business practices, which were deemed to be anti-competitive and Ma had been missing from public view since mid-January.

Also read Alibaba plans $ 5 bln bond this month amid regulatory scrutiny

The company, based in the eastern city of Hangzhou, said last month that it was “fully cooperating” with the state administration’s investigation into market regulation.

Regulators are also investigating whether VCs should distribute property unrelated to their main online retail business, the Wall Street Journal reported without presenting details.

When contacted by AFP, Alibaba spokesman declined to comment on the report.

The company has been under fire in the past for refusing to list its merchants on rival e-commerce platforms.

Once finalized, the measures against Alibaba will need to be approved by China’s top leadership.

Regulators have already asked Ant Group to change its business model and withdraw its lending, insurance and wealth management services.

Alibaba made 52 percent to 12.2 billion in profits in the last three months of 2020, despite the official rift.