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Alibaba may be forced to cough up record $975M fine by Chinese regulators

12 March 2021 12:02 (UTC +04:00)

Alibaba Group Holding Limited (NASDAQ: BABA) has rubbed the all-powerful Chinese Communist Party the wrong way, and as a result, the e-commerce giant has been facing increased regulatory scrutiny, APA reports citing Yahoo.

Antitrust regulators in China are mulling the imposition of a fine of over $975 million on Alibaba, the Wall Street Journal reported Thursday, citing people familiar with the matter.

If the fine materializes, it would be the highest fine paid in Chinese corporate history.

In 2015, QUALCOMM Incorporated (NASDAQ: QCOM) paid $975 million to settle antitrust investigations over anti-competitive practices.

Late last year, Chinese regulators began clamping down on Alibaba and its Ant Financial subsidiary.

Ant Financial was reprimanded for being a risk to the financial system, and was asked to enact changes that could severely impede its business prospects.

Alibaba had to shelve IPO plans for Ant Financial.