JD.com (NASDAQ:JD), the Chinese online retail giant, declared victory on Friday in an anti-monopoly lawsuit against its rival Alibaba (NYSE:BABA). The High People’s Court of Beijing ruled that Alibaba Group Holding Limited, along with Zhejiang Tmall Network Co and Zhejiang Tmall Technology Co, engaged in monopolistic practices known as “choosing one from two” and abused their market dominance. As a consequence, Alibaba has been fined 1 billion yuan ($140.68 million).
According to JD.com’s official WeChat account statement, the court’s decision highlights the abuse of market dominance by Alibaba, causing severe damage to JD.com. The ruling is described as a significant moment in China’s anti-monopoly legal process, promoting market fairness and competition order through the rule of law.
JD.com kept its response brief, stating that it has nothing more to add beyond the official statement.
An Alibaba spokesperson, in response to the ruling, informed Reuters that they are aware of the decision and “respect the court’s decision.” Alibaba had previously faced a record $2.75 billion fine in 2021 in an antitrust probe by Chinese regulators, which accused the company of abusing its market dominance.
The legal battle between JD.com and Alibaba revolves around the controversial practice known as “choosing one out of two,” where brands and merchants were allegedly told they had to operate exclusively on one platform if they wanted to be present on either JD.com or Alibaba’s platform. The ruling marks a significant development in the ongoing competition and antimonopoly landscape in China’s e-commerce sector.
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