Alibaba Concludes Three-Year “Rectification” Process, States it as a “New Starting Point for Development”
On August 30, China’s market regulation authorities issued a statement announcing that Alibaba Group has successfully completed a three-year rectification process, achieving positive results.
The statement reads, “Based on the verification and assessment, Alibaba Group has, in accordance with the requirements, fully ceased monopolistic behaviors, strictly regulated its own business activities, earnestly implemented the responsibilities of the platform entity, improved corporate compliance management systems, and enhanced the service level for merchants and consumers on the platform. The compliance rectification work has achieved good results, the online retail market environment has improved, fair competition order has been effectively restored, market development space has been continuously expanded, competition vitality between platforms has significantly increased, and the quality of platform economy development and business environment has been continuously optimized.”
In response to this, Alibaba stated: “For Alibaba, this is a new starting point. In the future, we will continue to base ourselves on innovation, adhere to compliant operations, increase technology investment, promote the healthy development of the platform economy, and create more value for society.” According to public information, in April 2021, Alibaba initiated a three-year self-inspection and rectification process as required by the State Administration for Market Regulation.
On April 10, 2021, the State Administration for Market Regulation legally imposed administrative penalties on Alibaba for monopolistic behavior, ordering Alibaba Group to cease illegal activities and imposing a fine of 4% of its 2019 domestic sales revenue of 455.712 billion yuan, totaling 18.228 billion yuan. In accordance with the principle of combining punishment with education stipulated in the Administrative Penalty Law, the State Administration for Market Regulation issued an “Administrative Guidance” to Alibaba Group, requiring it to carry out comprehensive rectification around strictly implementing the responsibilities of platform companies, strengthening internal control and compliance management, maintaining fair competition, protecting the legitimate rights and interests of merchants and consumers on the platform, and submitting self-inspection compliance reports to the State Administration for Market Regulation for three consecutive years.
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