In a historic legal battle, JD.com, the prominent Chinese online retailer, has secured a resounding victory against its competitor Alibaba. The High People’s Court of Beijing upheld a significant fine of 1 billion yuan ($140.68 million) against Alibaba Group Holding Limited, Zhejiang Tmall Network Co, and Zhejiang Tmall Technology Co for engaging in monopolistic practices.
The court’s ruling revolves around Alibaba’s abuse of market dominance through the contentious «choosing one from two» approach, causing considerable harm to JD.com. This monopolistic strategy, which compelled brands and merchants to operate exclusively on Alibaba’s platforms, was vehemently opposed by JD.com.
In a statement published on its official WeChat account, JD.com hailed the court’s decision not just as a victory for the company but as a pivotal moment in upholding market fairness and competition order through the rule of law. This ruling is expected to play a significant role in shaping the trajectory of China’s anti-monopoly legal framework.
«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,» emphasized the statement.
Alibaba, upon learning of the court’s decision, acknowledged the ruling and expressed that they «respect the court’s decision.» This comes on the heels of Alibaba facing a record-breaking $2.75 billion fine in a 2021 antitrust probe by Chinese regulators, accusing the e-commerce giant of market dominance abuse.
At the heart of the matter lies the contentious practice of «choosing one out of two,» where both e-commerce giants accused each other of pressuring brands and merchants into exclusive agreements. Beyond the legal victory for JD.com, this court decision sheds light on broader issues of antimonopoly practices in China’s e-commerce landscape. As the legal landscape evolves, this ruling is poised to influence the future of fair competition and market order within China’s dynamic digital marketplace.
