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Chinese e-commerce giant JD.com wins antitrust lawsuit against Alibaba, which was ordered by a Beijing court to pay US$141 million in damages
- The Beijing High People’s Court on Friday ruled that Alibaba ‘abused its market dominance’, using the tactic known as ‘picking one from two’
- JD.com asserted that monopolistic practices have hampered competition in China’s e-commerce market and hurt the rights of merchants and consumers
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Iris Dengin Shenzhen
Chinese e-commerce giant JD.com said it won an antitrust lawsuit against main rival Alibaba Group Holding, which was ordered by a Beijing court to pay 1 billion yuan (US$141 million) in damages, more than two years after the Taobao and Tmall operator was slapped with a record fine by market regulators for its monopolistic practices.
The Beijing High People’s Court on Friday ruled that Alibaba, owner of the South China Morning Post, “abused its market dominance” and conducted the monopolistic tactic known as “picking one from two”, which caused damage to JD.com’s business, according to a statement released on the same day by the Beijing-based online retailer.
JD.com hailed the court’s ruling, as it asserted that monopolistic practices, such as “picking one from two”, have hampered market competition and hurt the rights of brands, merchants and consumers.
That tactic, in which online merchants are forced to choose only one platform as their exclusive distribution channel, had been a common practice for years in China’s e-commerce market until it triggered an antitrust investigation against Alibaba in December 2020.
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China kicks off antitrust probes into Alibaba over alleged monopolistic practices
China kicks off antitrust probes into Alibaba over alleged monopolistic practices
Alibaba said it was informed of the judgment and respects the court’s ruling, according to a company spokeswoman on Friday.
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