Alibaba Hit with 1 Billion Yuan Fine in Antitrust Lawsuit Filed by JD.com
Jan. 05, 2024 07:06 AMKey Points
- 1. JD.com emerges victorious in antitrust lawsuit against Alibaba, which was fined 1 billion yuan for monopolistic practices.
- 2. Beijing Supreme Court rules that Alibaba abused market dominance and engaged in monopolistic practices known as "choose one out of two."
- 3. JD.com sees the ruling as a significant moment in defending market justice and competition through the rule of law.
- 4. Alibaba respects the court's decision and acknowledges the harm caused by its actions.
- 5. This ruling adds to the growing scrutiny and fines faced by Alibaba for its alleged abuse of market dominance.
The Chinese online retailer JD.com declared a significant legal victory over its rival Alibaba, as the latter was fined 1 billion yuan (approximately 128.67 million euros) for monopolistic practices.
The Supreme Court Ruled
Beijing's Supreme Court ruled that Alibaba Group Holding Limited, in conjunction with Zhejiang Tmall Network Co and Zhejiang Tmall Technology Co, had abused its dominance in the market by employing the 'choose one out of two' approach, causing significant harm to JD.com, as stated in a WeChat post by JD.com.
JD.com refrained from further commentary beyond the official statement.
"This ruling is not only a fair decision affirming JD's resistance against the 'choose one out of two' monopoly but also a historic moment in upholding market justice and competition order through the rule of law," the statement emphasized. "It will be a significant moment in China's antitrust legal process," it added.
A spokesperson from Alibaba, acknowledged the verdict, stating they "respect the court's decision."
Alibaba faced a record fine of $2.75 billion (approximately 2.51 billion euros) following a Chinese regulatory antitrust investigation in 2021. The investigation revealed alleged abuse of its market dominance.
The two e-commerce giants in China had previously criticized each other over the practice known as 'choose one out of two.' They cited instances where brands and merchants were allegedly told they had to operate exclusively on their platform if they wished to do business.
The ruling underscores the intensifying regulatory scrutiny and the importance of fair competition in China's rapidly expanding e-commerce landscape. JD.com's legal triumph marks a significant chapter in antitrust enforcement, signaling a shift toward a more level playing field within the country's competitive market environment.
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