China fines Alibaba, JD.com, Vipshop for pricing complaints

Consumers accused these platforms of raising product prices before offering discounts at a major retail festival in November, making it seem like they got a better bargain than they actually were, the regulator said. The platforms were also involved in making fake promotions and using bait-and-swap tactics, the regulator said.

Alibaba declined to comment. JD.com and Vipshop Holdings did not immediately respond to requests for comment.

While the fines were nominal to the companies, they serve as a warning to them and the wider internet industry. In recent months, China has tightened its investigation of the powerful technology sector that has accumulated massive amounts of user data.

That campaign has hit billionaire Jack Ma hardest so far, along with the two companies he founded – Alibaba and fintech giant Ant Group.

In early November, Beijing sank Ant’s IPO, which was on track to raise at least $ 34.4 billion. That came after Mr. Ma, Ant’s controlling shareholder, criticized President Xi Jinping’s risk management initiative, while also criticizing regulators for stifling innovation. On Sunday, regulators ordered Ant to refocus on its original payment business while limiting its more profitable investing and credit business.

Meanwhile, regulators last week launched an antitrust investigation into Alibaba, which owns one-third of Ant, over allegations that the company has used its dominant market position to pressure traders to sell only on its platforms. The Chinese government is trying to shrink Mr. Ma’s empire and possibly take a larger share of his businesses.

China also introduced a set of new draft antitrust guidelines for the technology industry last month to regulate emerging Internet consumer trends.

—Liza Lin contributed to this article.

Write to Chong Koh Ping at [email protected]