Huge fine for Trendyol's owner

Major technology companies hold significant power both in their home countries and in other markets. However, in recent years, a series of monopolization, or antitrust, lawsuits have been filed against these companies. Alibaba, one of the world's and China's largest e-commerce giants, has also received a record fine in an antitrust case.

RECORD FINE

Alibaba is facing a record antitrust fine in China. According to reports, JD.com filed a complaint alleging that the e-commerce giant resorted to a monopolistic practice known as "choosing one of two." But what exactly does the "choosing one of two" practice, which was widely used in China before December 2020, mean?

This practice forces sellers who want to sell on marketplaces like Amazon and JD.com to sell in only one place. Accordingly, sellers can only choose one of the two markets offered. However, JD.com first objected to this practice by Alibaba in 2017. JD.com then applied to the court in 2019 on the grounds that this hindered competition and directed sellers to large markets.

Following the investigation, Alibaba faced a record fine of 1 billion Yuan, or 140 billion Dollars. However, this is not the largest fine Alibaba has paid. The antitrust watchdog, the State Administration for Market Regulation, hit the Alibaba company with a record fine of 2.75 billion dollars.

Alibaba became a partner in Trendyol in 2018 by paying 728 million Dollars. In this sense, the fine Alibaba will now pay is one-fifth of the money it paid for Trendyol. Although this fine is not challenging for Alibaba, JD.com and Alibaba are currently among China's biggest rivals. However, the biggest concern for both companies right now is the rise of Pinduoduo, which sells via live streaming. The company has recently become China's top-selling e-commerce firm.

News Source: 12punto