Chinese e-commerce company JD.com has won a legal battle with Alibaba Group Holding following a years-long anti-monopoly case.
The High People’s Court of Beijing in China has asked Alibaba to pay damages of 1bn yuan ($141m) to JD.com for its monopolistic practices, reported Reuters.
The ruling follows the findings of the court that Alibaba, together with its subsidiaries Zhejiang Tmall Network and Zhejiang Tmall Technology, abused its market position by enforcing a policy known as “choosing one from two,” which significantly harmed JD.com.
JD stated on its official WeChat account that its rivals had exploited their market dominance by forcing sellers to sell on a single platform.
JD.com was quoted by Reuters as saying: “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.
“It will be a significant moment in China’s anti-monopoly legal process.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
The lawsuit was initiated by JD.com in 2017 to challenge the exclusivity requirement of Alibaba.
An Alibaba spokesperson told Reuters: “We are aware of the ruling and respect the court’s decision.”
In 2021, Alibaba faced a fine of $2.75bn following an anti-trust probe by Chinese regulators.
Alibaba’s then-CEO and chairman Daniel Zhang stepped down in June 2023 to focus on the company’s cloud division.