China’s top market regulator will impose a 3 million yuan (US$464,000) fine on online discount retailer Vipshop for unfair competition, a move that reinforces Beijing’s antitrust campaign in the country’s internet sector.
The State Administration for Market Regulation (SAMR) said in a statement on Monday that its investigation into Vipshop, covering data collected between August and December last year, found that the Guangzhou-based company ran an inspection system that obtained information about brands on its platform and others to gain a competitive advantage.
The firm also used a range of techniques to influence user choices and block the sale of certain products, which limited the traffic and transaction opportunities of certain brands, according to the SAMR.
In a statement posted on Weibo, Vipshop said that it had no objections to the regulator’s findings and that it will spare no effort to rectify its business practices.
Vipshop is one of the leading online discount retailers for brands in China. Photo: Martin Chan
The latest penalty levied on Vipshop bolsters Beijing’s initiative to crack down on unfair competition and monopolistic practices in China’s internet sector.
Vipshop, which runs the Vip.com e-commerce platform, was slapped with a 500,000 yuan fine by the SAMR in December last year in accordance with the country’s Price Law and other pricing regulations.
