The Chinese government, which continues to try to tighten its control over China’s growing tech industry, fined the two companies — along with a third firm VipShop Holdings — on charges of misreporting prices and offering false promotions, among other things, after receiving consumer complaints.
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Some shoppers believe the platforms inflated prices last month, only to lower them during November’s Singles’ Day to make it appear as though they were receiving a discount.
Each firm was fined 500,000 yuan, or a little more than $76,000, and has 60 days to appeal. Alibaba and JD.com could not be reached for comment.
Meanwhile, China’s e-commerce industry continues to grow. Alibaba, China’s largest online shopping platform, generated more than $74 billion in revenues during November’s shopping event, or nearly double the amount from the previous year. JD.com, the second largest e-commerce player in China, had $41 billion in sales during the event.