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Alibaba CEO tells shareholders that record antitrust fine made it ‘more thoughtful’ about its responsibilities
- Daniel Zhang Yong, chairman and CEO of Alibaba Group Holding, told shareholders that internet platform businesses share similarities with society at large
- Zhang’s remarks come as the country’s technology firms are under scrutiny by both Beijing and society at large for putting profits before social responsibility
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Daniel Zhang Yong, chairman and CEO of Chinese e-commerce giant Alibaba Group Holding, said that the record antitrust fine in April made the company “more thoughtful about the responsibilities” of a platform company as Beijing continues its sweeping regulatory crackdown on the country’s tech industry.
“Internet platform businesses inherently share common characteristics with society,” Zhang said in a letter to shareholders on Tuesday. “We need to give more thought towards the positive value being created for society; addressing challenges related to essential technology; supporting the development of rural revitalisation; becoming more environmentally friendly and sustainable.”
Zhang’s remarks come as the country’s technology firms are under scrutiny by both Beijing and society at large for putting profits before social responsibility.
Alibaba, which owns the South China Morning Post, was fined 18.2 billion yuan (US$2.8 billion) three months ago for monopolistic practices including “picking one from two” that forced online merchants to choose just one distribution channel.
On-demand food delivery platform Meituan is also the subject of an investigation into similar practices while ride-hailing giant Didi Chuxing faces a cybersecurity review after the company “forced its way” to a New York listing late last month.
The almost continuous crackdown on China’s tech industry from different government bodies seems to be getting worse.
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