Vipshop fined US$464,000 for anti-competitive conduct
Print Edition
CHINA’S top market regulator has fined online discount retailer Vipshop Holdings Ltd 3 million yuan (US$464,000) for anti-competitive behavior, the latest crackdown on the Internet platform’s market operation irregularities in a campaign to step up regulations of the country’s digital business.
The State Administration for Market Regulation began investigating last month and found the company had used its own software and data acquisition system to obtain the information of brands operating on its platform as well as other e-commerce marketplaces, in order to gain competitive advantage.
Between August and December 2020, Vipshop used its supply chain system, middleware and other smart algorithms to influence user choices, transaction opportunities and to block sales of particular brands.
“Vipshop has obstructed certain vendors’ sales channels by preventing them from offering products and services through other online retailers,” an official from the administration said.
“It has failed to stick to the market principle of voluntary fair trade and good faith, which violates the Law Against Unfair Competition,” the official said.
New York-listed Vipshop, which has a market value of about US$22 billion, said yesterday that it accepted SAMR’s findings and would strengthen compliance.
The fine came just a day after the release of antitrust guidelines by the State Council, a formalization of an earlier antitrust draft law that targets Internet platforms to ensure fair market competition. The council pledged to stop companies from price fixing, restricting technologies and using data and algorithms to manipulate the market or force merchants to choose among the country’s top Internet companies.
Vipshop was punished for violating a law on unfair competition, which carries a maximum fine of up to 5 million yuan. By comparison, other firms that have been hit with penalties were fined under a 2008 anti-monopoly law with a lower fine of 500,000 yuan.
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