China fines Tmall, JD and Vipshop for price irregularities in Beijing’s latest swipe at e-commerce giants
- Tmall, JD and Vipshop were each fined 500,000 yuan over pricing irregularities, mirroring other recent fines levied against Chinese tech companies
- Big Tech companies are facing increasing regulatory scrutiny amid a new antitrust crackdown from Beijing
China’s market watchdog said on Wednesday that it had fined the operators of Alibaba Group Holding’s Tmall, JD.com and Vipshop for pricing irregularities in November and early December.
The fines of 500,000 yuan (US$77,000) each, the maximum for price irregularities, are Beijing’s latest move in disciplining the country’s e-commerce giants.
The State Administration for Market Regulation made the decision to fine the three companies on December 24, the same day it announced an antitrust probe into Alibaba. It also came a week after it fined another Alibaba subsidiary, a unit of social-media and gaming juggernaut Tencent Holdings, and an affiliate of express delivery company SF Holding.
The fines, also for 500,000 yuan each, were over failures to report acquisitions of competitors. Alibaba is the owner of the South China Morning Post.
In the latest fines, the regulator said the administrative penalty is being imposed after consumers complained that the platforms raised prices before introducing discounts, engaged in fraudulent promotions and induced consumers into purchases during the Singles’ Day shopping festival on November 11.