Alibaba Group Holding's Tutoring Application Has Been Fined!

  Alibaba Group Holding-'s Tutoring Application Has Been Fined! Alibaba Group Holding Ltd., was fined 2.5 million yuan ($ 389,000). Zuoyebang, who received funding from Alibaba Group Holding Ltd., was fined 2.5 million yuan ($ 389,000). The Beijing government fined private tutoring practices supported by Tencent TCEHY (Other OTC) $75.15 -3.03(-3.88%) and Alibaba BABA (NYSE) $220.71 -4.60(-2.04%) While expanding its wide-ranging technology campaign to online education, China has handed a record penalty to two of the country's fastest growing education practices for violating competition and pricing laws. In this context, Tencent Holdings Ltd. Funded by Yuanfudao and Alibaba Group Holding Ltd., Zuoyebang was fined 2.5 million yuan ($ 389,000). Competition watchers said these firms were punished for making misleading claims about their businesses, from falsifying faculty qualifications to forging user reviews. Yuanfudao and Zuoyebang stated that they accepted the penalties and would fix the related problems. The rapid growth of private education providers during the pandemic has also led to increased scrutiny on the industry.

Alibaba Group Holding Ltd., was fined 2.5 million yuan ($ 389,000).

China's Ministry of Education also issued a statement echoing the limits of after-school education programs to ensure students get enough sleep. "Fines are closely related to the illegal activities of after-school tutoring institutions and their anxiety-provoking potential. Regulatory pressure will continue to increase for the rest of the year," said Ye Le, Shanghai-based analyst at China Securities. These two apps are on record as the latest of the online firms owned by giants like Alibaba and Tencent that have clashed with antitrust in recent months. Both initiatives are said to be working on their initial public offerings. Bloomberg News, in a news published in March; Supporters include SoftBank Vision Fund, Goldman Sachs Group Inc. and Sequoia Capital China, former Joyy Inc. Finance Manager reported that he was preparing to hire Bing Jin to assist with listing preparations.  

Source: finance.yahoo.com

 

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