Why was Alibaba Group fined 18.228 billion yuan?

On April 10, the State Administration for Market Regulation issued a complaint against AlibabaSuspected of monopolizing the Internet retail marketA penalty was imposed, ordering Alibaba Group to cease its illegal acts and imposing a fine of 4% of its 2019 domestic sales of 100 million yuan, totaling 100 million yuan. This penalty is also the largest anti-monopoly fine ever issued by China to a company, after the highest fine was 100 million yuan for Qualcomm's anti-monopoly fine.

Since 2015, Alibaba Group has used its dominant position in the market to put forward "one of two choices" requirements for merchants on the platform, prohibiting merchants on the platform from opening stores on other platforms or participating in ** activities, and with the help of market forces, platform rules and big data technology, it has adopted a variety of incentives and punishments to ensure the implementation of the "one of two choices" requirements, and maintain and enhance its own market power. Gain an unfair competitive advantage.

The punishment of Alibaba this time is actually to rectify the current Internet retail industry, create a benign Internet retail environment, and promote the sustainable and healthy development of the Internet retail market. If a large Internet company is allowed to monopolize the retail market at will, it will restrict the competition in the domestic online retail platform service market, hinder the free flow of goods, services and resource elements, affect the innovation and development of the platform economy, infringe on the legitimate rights and interests of merchants on the platform, and harm the interests of consumers.

Alibaba. The main reason for the hefty fines is the long-standing practice of monopolistic practices.

According to official disclosure information, since 2015, Alibaba has abused its dominant market position due to its huge market space and the massive data, rules and technology of the platform. Merchants on the platform are prohibited from opening stores on other platforms, and the act of choosing one or the other is implemented, which hinders the platform economy.

Innovative development harms the interests of consumers and violates the Anti-Monopoly Law

Relevant regulations, State Administration for Market Regulation.

An administrative penalty was imposed on him in accordance with the law, and he was punished with the sales revenue of the previous year.

4% fine, totaling 100 million yuan. The specific reasons for punishment are as follows:

1) Excluding or restricting competition in China's domestic online retail platform service market. Alibaba's restriction on the operators on the platform can only conduct transactions with them, and they cannot enter other competitive platforms or carry out first-class activities on other competitive platforms, which directly weakens the ability of other competitive platforms to compete fairly with Alibaba and the degree of competition in the relevant market, unduly raises the market entry barriers of potential competitors, and undermines the fair and orderly market competition order.

2) harming the interests of operators on the platform. Alibaba's relevant actions have directly restricted the operational autonomy of operators on the platform, weakened the intra-brand competition of goods, and harmed the interests of operators on the platform. The first is to damage the operational autonomy of operators on the platform.

The second is to improperly derogate from the legitimate interests of operators on the platform. The third is to weaken the degree of competition within the brand.

3) Hindering the optimal allocation of resources and restricting the innovative development of the platform economy. Alibaba's actions have hindered the optimal allocation of resources in the online retail platform service market and inhibited market players.

vitality, restricting the innovation and development of the platform economy. One is that it hinders the free flow of factors and reduces the efficiency of resource allocation. The second is to restrict the diversification, differentiation and innovative operation of operators within the platform. Third, it inhibits the vitality of market entities and affects the innovation and development of the platform economy.

4) Harming the interests of consumers. Alibaba's actions have restricted consumers' right to free choice and fair trade, and harmed consumers' interests. One is that it restricts consumers' freedom of choice.

The second is that it restricts consumers' right to fair trade. The third is the potential damage to the overall level of social welfare in the long run.

This is becauseAlibaba GroupviolatedAnti-Monopoly LawAlibaba on **, Tmall.

Merchants are prohibited from choosing one or the other, and they are prohibited from choosing other e-commerce platforms if they are settled**. Tmall, you can't choose other e-commerce platforms.

Alibaba Group's monopolistic behavior

Alibaba Group's conduct violated Article 17, Paragraph 1 (4) of the Anti-Monopoly Law, which prohibits the abuse of market dominance by restricting trading counterparties to only transact with them without justifiable reasons. According to the relevant regulations, a fine of 4% of Alibaba's sales, that is, 18.2 billion, was imposed.

Alibaba has been using its monopoly position to force merchants not to choose other platforms for many years. It is also very bitter for the merchants of **Tmall, because they also want to choose JD.com and Pinduoduo.

and other e-commerce platforms.

Because only when there are more platforms, there will be more customers, and the profits will be higher for merchants. But Alibaba, in order to strengthen its monopoly position, forcibly forbade them to choose. This penalty is also well deserved, and it is also a good thing for merchants.

Anti-monopoly on the Internet will become more and more stringent

Alibaba was fined 18.2 billion yuan to start China's anti-monopoly.

process. Because China has never imposed such a fine before, this time it is also a good start. In the past few years, China's rapid economic development has led to the failure of relevant laws to keep up, and the Internet monopoly has become more and more serious.

Internet giants such as Meituan and JD.com have used their monopoly positions to allow business users to choose one of the two, making life very inconvenient. For example, if you buy something in **, you can't pay with WeChat. You can't pay with Alipay when buying things on JD.com.

Gone are the days of Internet capital staking and staking land

These Internet capital giants have a large amount of capital after they have obtained a monopoly position. When they find an industry that can make money, they will use a lot of capital to put other small and medium-sized enterprises.

Squeeze out, and thus gain a monopoly position.

But this era is gone, because in the future, there will be more and more perfect Anti-Monopoly Law waiting for them, as long as they violate the Anti-Monopoly Law, they will face large fines. Life will get better and better for users and merchants.

Personally, I think the reason why Alibaba Group was fined 18.2 billion yuan is because they have a monopoly on the market, which leads to disharmony in the competition in the entire market.

This is because Alibaba has broken the law. They require merchants to settle on their platforms so that they cannot enter other platforms, restricting merchants' freedom of transaction and violating anti-monopoly laws.

Because Alibaba monopolizes market resources, I can only choose 1 out of 2 for his merchants, and cannot choose other markets.

This is because Alibaba Group has recently violated the relevant regulations of anti-monopoly organizations, and it has also formed unfair competition.

Because the monopoly phenomenon of Alibaba Group is too serious, the current state is a "society" rather than a "capital", and such a group needs to be rectified.

Alibaba was fined for monopoly, and in the market, Alibaba implemented a "either-or" system in the face of platform services, which is a monopolistic behavior that prohibits other domestic merchants from participating in the competition, so as to obtain improper benefits.

Because Alibaba Group did not use major merchants to conduct transactions freely, it violated the provisions of the Anti-Monopoly Law, and Alibaba's actions harmed the legitimate rights and interests of major merchants and their right to trade freely.

Because Alibaba Group violated the anti-monopoly law and monopolized the e-commerce industry. So the state gave Alibaba a certain punishment according to the law, so it was fined so much in the end.

It is because they are suspected of monopoly, restricting other merchants and buyers from buying things only in the specified places.

Because some of Alibaba's previous behaviors were suspected of monopolizing the market, the regulatory authorities punished Alibaba, and the amount of the penalty this time is still very large.

Alibaba Group was fined because Alibaba banned Tmall merchants from choosing other e-commerce platforms. Let these merchants only sell things on ** and Tmall, and cannot sell things on other e-commerce platforms. As a result, the use of its dominant market position restricts merchants to only trade with it.

violated the "Anti-Monopoly Law", so he was fined 100 million yuan.

The current state of e-commerce platforms

Now the e-commerce platform is no longer a monopoly situation, a few years ago, the first position in the e-commerce industry has always been the first. However, Jingdong used its own operation to break through the blockade of **. It has gained a certain market share in the e-commerce industry.

Pinduoduo has also gained a certain share by taking advantage of low-cost group pooling. In addition to these two e-commerce platforms, they have gained a large market share by taking advantage of the differences.

Other e-commerce platforms are second-tier platforms, and their market share is very small. Like NetEase Koala, Xiaohongshu, Jumei, Vipshop and so on. It is all because of the monopoly position of **, which compresses the development of these small e-commerce platforms to a certain extent.

The reason why Alibaba Group prohibits other merchants from choosing other platforms

Now, there is Pinduoduo in C2C and JD in B2C. For Alibaba, their competitive pressure is very high, and e-commerce brands have two major resources, one is merchants, and the other is consumers. In the case that Alibaba cannot control consumers, they can only control merchants.

Only by controlling the merchants can other e-commerce platforms wither. Thus allowing consumers to choose**, but this is a vicious competition and violates the Anti-Monopoly Law. At a time when China's Anti-Monopoly Law is not perfect, Alibaba can do so.

But now that China's Anti-Monopoly Law has been preliminarily improved, Alibaba has hit the gun.

The benefits of Alibaba Group's fines

This time, Alibaba was fined a huge amount for monopoly. It's a good thing for businesses across China. Because it can allow some small and medium-sized enterprises to develop with confidence. It will not monopolize the vicious competition of giants and strangle these small and medium-sized enterprises in the cradle.

In fact, the main reason is that there are still some violations, and then there are some counterfeit and shoddy products, in which case they will be fined, so there are still loopholes in its management.

Because Alibaba violated the anti-monopoly law, it was duly punished, and after this incident, I hope that Alibaba can operate legally in the future.

Many platforms under Ali are fraudulent, lawless, and too lacking in morality!

1.The State Administration for Market Regulation (SAMR) is investigating Alibaba Group

2.About the businesses involved in Alibaba Group

In fact, this is not a simple punishment, but mainly to remind some other companies that they should strengthen internal control and compliance management, maintain fair competition on the platform, and protect the legitimate rights and interests of platform merchants and consumers. Therefore, the state will come forward to supervise the law, and I believe that the market will get better and better in the future.

The fine is because he has violated market regulations by malicious competition, malicious marketing, and has broken market regulations. So it was fined.

The reason for the fine is Alibaba's alleged monopoly, and it has been since 2015.

Monopolize. Alibaba monopolizes the market and requires merchants to "choose one of the two", which is illegal.

The sky-high fine of 100 million yuan came in a timely manner and upheld the principle of fair competition in the market.

The main reason for the fine is that Alibaba has a monopoly incident in his industry, because monopoly is expressly prohibited by the state, but Alibaba knowingly committed it, so this time it was fined, I think it is also a warning to them.

It seems that they did not participate in anti-monopoly activities, and the development of the enterprise has monopolized the entire industry, and the relevant departments have imposed penalties.

It is understood that the reason why Alibaba was punished in this way was because of the investigation of "one of two choices", but the upper limit of the platform's two-choice fine is 2 million yuan. This time, Ali was fined 100 million, far exceeding the upper limit of 2 million, which is a relatively large fine so far.

Ali was fined for abuse of its dominant market position, with a fine of 4% of domestic sales in 2019.

The purpose of the fine is to punish Ali's monopoly and prevent Ali's family from becoming dominant. But the penalty for splitting has not yet been used.

It will not be used unless it is a last resort, and Ali still contributes to economic development.

Basically, the small Internet has been co-opted or allied. For example, bicycle sharing, such as food delivery business, they are not only a giant, but also a huge ecosystem.

With great power comes great responsibility. On the road to becoming a giant, the scale of enterprises is different, and the social responsibilities are also different. For example, in the small supermarket at our doorstep, our requirements can only be:

Operate honestly and do not sell fakes. But this is not the case for large enterprises.

For example, the sense of social responsibility, the outbreak of the epidemic in 2020, the small supermarket is not closed, so that we can still buy things, and everyone burns incense and worships the Buddha. However, large enterprises have to bear more, such as SF Express, which previously released a financial report loss, and continued to maintain the receipt and delivery business during the epidemic.

Alibaba's most criticized business today is mainly for Ant Financial's Huabei and borrowing businesses。Why has it not been liquidated, because Ant is a super large volume, a large number of customers, and the impact is also super large.

The most powerful underlying logic of Ant is data, which gives credit lines based on a person's consumption records, and rewards for opening Huabei, borrowing, etc., which calculates your repayment ability based on data.

The more money you spend, the higher the amount, the higher the amount, the more you want to spend money, and you can't pay back the flowers, so you borrow it first, and then your finances continue to expand, and you will be burdened with heavy interest. The scope of the impact is far from being comparable to that of other enterprises, and only a group of people are used, most of whom are young people with irregular incomes.

So the larger piece of cake on the market was cut to the ants, and sooner or later they had to be returned, and the ants were not listed earlierThe huge fines that have been imposed today are largely because the traffic is too large, the data is too large, and a slight flutter may be a stormy wave, so it is inevitable to strengthen supervision.