By SHANGHAI (Reuters) – China’s State Administration of Market Regulation (SAMR) said on Friday that Alibaba (NYSE:BABA) Group had completed three years “rectification” following a record $2.75 billion fine levied in 2021 for monopolistic practices.
The regulator said Alibaba had achieved “good results” and that it would continue to “guide” the e-commerce giant to “regulate its operations and improve its compliance and quality”.
Here is a timeline of key events leading up to and following the fine.
NOV. 10, 2020 – CHINA PUBLISHES DRAFT ANTI-MONOPOLY RULES FOR INTERNET PLATFORMS
China published draft rules aimed at preventing monopolistic behaviour by internet platforms, increasing scrutiny of online marketplaces and payment services of firms such as Alibaba.
APR. 10, 2021 – REGULATOR HITS ALIBABA WITH RECORD FINE
China imposed a record 18 billion yuan ($2.75 billion) fine on Alibaba after an anti-monopoly probe concluded that the firm had been “abusing its market dominance” since 2015 by preventing merchants from using other e-commerce platforms.
DEC. 6, 2021 – ALIBABA REPLACES CFO, REORGANISES E-COMMERCE BUSINESSES
Alibaba said it will reorganise its international and domestic e-commerce businesses and replace its chief financial officer. The changes came at a time of heightened competition and slowing economic growth as well as increased regulatory scrutiny.
APR. 30, 2022 – CHINA SIGNALS EASING OF TECH SECTOR CRACKDOWN
The Politburo, following a meeting chaired by President Xi Jinping, said it will increase policy support, including for the so-called platform economy, to stimulate economic activity after a period of growth-sapping COVID-19 containment measures.
MAR. 28, 2023 – ALIBABA BREAKS UP BUSINESS INTO SIX UNITS
Alibaba announced the biggest restructuring in its 24-year history, saying it will split into six units and explore listings for most of them, as the government vowed to ease a sweeping regulatory crackdown and support private enterprises.
JUNE 20, 2023 – ALIBABA GROUP CEO STEPS DOWN
Alibaba said then-Chief Executive Officer and Chairman Daniel Zhang would step down to focus on its cloud division. Eddie Yongming Wu, chairman of Alibaba’s Taobao and Tmall, took over as CEO and Executive Vice Chairman Joseph Tsai became chairman.
SEPT. 10, 2023 – DANIEL ZHANG QUITS CLOUD BUSINESS
Zhang quits the cloud business, in a development that took market watchers by surprise. Wu takes over the unit.
NOV. 16, 2023 – ALIBABA SCRAPS CLOUD UNIT LISTING
Alibaba announced it would not spin off its cloud business as previously planned, citing uncertainty created by U.S. export curbs on chips used in artificial intelligence applications.
DEC. 20, 2023 – CEO WU FURTHER CONSOLIDATES POWER BY TAKING OVER DOMESTIC E-COMMERCE
CEO Wu began to directly oversee Alibaba’s domestic e-commerce arm, a core area for attention and investment as it fends off competition from low-price rivals such as PDD’s Pinduoduo (NASDAQ:PDD).
MAR. 26, 2024 – ALIBABA SCRAPS LOGISTICS UNIT LISTING
Alibaba shelved plans to list Cainiao and said it would instead buy the rest of the stock it did not already own in the logistics unit for as much as $3.75 billion.
AUG. 15, 2024 – ALIBABA MISSES REVENUE ESTIMATES AMID CHINA CONSUMER MALAISE
Alibaba reported April-June revenue that grew 3.9% though missed market expectations and fell far short of the 30% growth of the same quarter three years earlier. Its stock was down 72% since the anti-monopoly rules announcement in November 2020, putting its value at $200 billion versus its $830 billion peak.
AUG. 30, 2024 – REGULATOR SAYS ALIBABA HAS COMPLETED THREE-YEAR ‘RECTIFICATION’
Alibaba described the regulator’s announcement as a “new starting point for development” and said it would continue to “promote the healthy development of the platform economy and create more value for society”.
