Updated December 29th, 2023 at 16:59 IST
JD.com emerges victorious in antimonopoly lawsuit against Alibaba
According to JD.com, the court found that Alibaba, along with Zhejiang Tmall Network Co and Zhejiang Tmall Technology Co, had abused their market dominance.
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Chinese online retailer JD.com celebrated a legal triumph on Friday, announcing its victory in an antimonopoly lawsuit against rival Alibaba. The High People's Court of Beijing ruled in favor of JD.com, imposing a fine of 1 billion Yuan ($140.68 million) on Alibaba Group Holding Limited for engaging in monopolistic practices.
According to JD.com's statement, the court found that Alibaba, along with Zhejiang Tmall Network Co and Zhejiang Tmall Technology Co, had abused their market dominance through the adoption of monopolistic practices known as "choosing one from two." This practice, as per the court's decision, inflicted severe damage on JD.com.
JD.com, in its official WeChat account statement, emphasised the significance of the ruling, stating, "This ruling is not only a fair decision for JD's resistance against the 'choose one out of two' monopoly but a landmark moment in upholding market fairness and competition order through the rule of law." The statement hailed the decision as a substantial moment in China's anti-monopoly legal process.
An Alibaba spokesperson, responding to the ruling, conveyed awareness and respect for the court's decision. Alibaba had previously faced a record $2.75 billion fine in a 2021 antitrust probe by Chinese regulators, citing abuse of market dominance.
The conflict between the two e-commerce giants in China centered around the practice of "choosing one out of two," where brands and merchants allegedly faced exclusivity demands if they wished to operate on a particular platform. This legal victory for JD.com marks a significant development in the ongoing battle over market fairness and competition practices within the Chinese e-commerce landscape.
(With Reuters inputs.)
Published December 29th, 2023 at 16:59 IST