- The High People’s Court of Beijing found Alibaba Group, Zhejiang Tmall Network Co, and Zhejiang Tmall Technology Co guilty of “choosing one from two” monopolistic practices.
- JD.com suffered severe damages due to these practices, according to their official statement.
- This ruling stands as a landmark moment in China’s anti-monopoly legal process.
- In 2021, Alibaba was fined $2.75 billion in an antitrust probe for similar offenses.
Landmark Ruling Against Alibaba Group
The Higher People’s Court of Beijing decreed that Alibaba Group Holding Limited, as well as Zhejiang Tmall Network Co and Zhejiang Tmall Technology Co, breached their market superiority and engaged in “one from two” monopolistic strategies. As a result, these infractions caused JD.com substantial damage, according to an official WeChat statement made by JD.com.
JD.com Reacts to the Decision
In response to the ruling, JD.com stated that they had no further information to provide beyond the initial statement. The company declared that this judgment was not merely a just resolution for their opposition to the ‘choose one out of two’ monopoly but was a momentous turning point in preserving market fairness and order via legal means. Referring to it as a pivotal occasion in China’s anti-monopoly legal history.
Alibaba Yet To Respond
No immediate response was received from Alibaba upon request for comment.
Record Fine For Alibaba
In 2021, Chinese regulators levied an unprecedented $2.75 billion penalty on Alibaba following an anti-trust probe. This investigation revealed that the company had violated its market dominance.
The Underlying Issue
The two China-based e-commerce juggernauts have accused each other of implementing a practice known as ‘choosing one from two.’ Brands and merchants were reportedly told that they must operate exclusively on their platform if they wished to do so.
A currency conversion rate snippet reveals that $1 equals 7.1083 renminbi.
The revenues of both these companies, and possibly of others operating platforms in China, could be impacted notably by this judgment. Any such significant changes in the e-commerce industry in China could cause currency volatility, indirectly influencing forex trading and potentially affecting relevant assets.