Alibaba & The Record $2.8 Billion Fine

China imposes a record penalty on Alibaba, leaving us with some important questions: Is everything alright now between Alibaba & the government?

What Happened?

Why Did This Happen?

The regulator also said that the company used its “market position, platform rules and data, and algorithmic methods” to put in place rewards and punishments for it “choose one of two” policy.

The Past

But did the fine and the investigation impact Qualcomm’s presence in China? The answer is NO. In fact, the company grew the next years in China, with the revenue coming from Ching growing from 50% of Qualcomm’s revenue to 60%. But can we say the same thing for Alibaba?

At the end of the day, the $2.8 billion fine might be a big amount for a company that logged $72 billion in revenue for its most recent fiscal year that ended in March 2020. However, the fine shows how China wants to continue its path to control the country’s internet as well as fintech companies and this clampdown might go on for a while.

Looking Ahead

So, the questions remain: will Jack Ma face more hurdles for his other entities in the future? And what other tech giants will be targeted by China? We have to wait and see how it goes…

Head to moneyguru’s Insight section to stay updated on all major financial news updates of the day!

Your Best Direct Mutual Fund Investing Experience Begins Here. Invest, Read and Track — at one place & for free! vist us at: