Chinese online discount retailer Vipshop has been slapped with a 3 million yuan (US$463,843) fine for unfair competition, a day after Beijing finalized rules to curb anti-competitive behavior. The heaviest penalty in the recent clampdown, it marks Beijing’s resolve to rein in monopolistic practices in big tech firms.

In an announcement on Weibo, Vipshop said it received the written decision of the administrative penalty from the State Administration for Market Regulation for violating a law prohibiting unfair competition. The company has no objection and will conduct reforms according to the rules and demands of the regulator.

The Tencent-backed e-commerce platform stressed that it would take the penalty as a warning and strengthen management in the company. It also pledged to defend fair competition and market order, while protecting the interests of consumers.

Beijing has stepped up crackdown and scrutiny of internet firms since December last year, calling the Ant Group’s public offering to a halt and launching a probe into e-commerce giant Alibaba. Under the new rules issued on Sunday, forcing merchants to choose between the country’s top platforms could constitute a violation.

Vipshop has been placed under investigation since last month after it was reported to the authorities. The marketing methods of the online retailer has stirred controversy in the past. It was hit with a 500,000 yuan fine last year, after the Chinese regulator found that it raised the pre-sale price of products before the Singles’ Day shopping festival, conducted false promotion and lured consumers into making transactions.

The online discount retailer was also asked to change its mobile application following accusations of collecting personal information unlawfully and imposing notifications on users. It was found hiring fake internet users to control the online narrative and reduce the impact of the negative news on the company.

Founded in 2008, Vipshop was listed in New York in 2012 and made a revenue of 93 billion yuan in 2019.

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