Alibaba Group Holding Limited 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 JD.com Inc 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 JD.com, Reuters reports.
In a statement published on its official WeChat account, JD.com 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.
JD.com 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.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
