E-commerce major JD.com has emerged victorious against rival Alibaba, securing a significant win in a lawsuit.
The High People’s Court of Beijing imposed a staggering fine of 1 billion yuan (equivalent to $140.68 million) on Alibaba for engaging in monopolistic practices, as confirmed by JD.com through its official WeChat account.
The court ruling highlighted that Alibaba Group Holding, alongside Zhejiang Tmall Network and Zhejiang Tmall Technology, had exploited their market dominance through the implementation of “choosing one from two” practices. JD.com, in its statement, expressed the court’s recognition of the severe harm caused to its operations due to these monopolistic maneuvers.
“This decision not only validates JD’s stand against the ‘choose one out of two’ monopoly but also signifies a pivotal moment in the enforcement of fair market practices and competition regulations under the framework of the law,” JD.com’s statement emphasized. It underscored the ruling’s significance in China’s legal proceedings against monopolistic behaviors.
Responding to the court’s decision, an Alibaba spokesperson conveyed to Reuters their acknowledgment of the ruling and their respect for the court’s verdict.
This legal clash follows Alibaba’s previous record-breaking fine of $2.75 billion in 2021, imposed by Chinese regulators in an anti-trust investigation. The probe had uncovered instances of Alibaba leveraging its dominant market position.
The rivalry between the two e-commerce giants in China escalated due to allegations surrounding the practice of “choosing one out of two.” Both companies accused each other of pressuring brands and merchants into exclusive partnerships, implying that operating on their platforms required an exclusive commitment.
The court’s judgment marks a significant milestone in the ongoing scrutiny of monopolistic behaviors within China’s e-commerce landscape, signifying a broader commitment to fostering fair competition and regulatory adherence.