Good People, when an “Ant” can pay a $984 million fine, you know you have a really big economy. Yes, “Chinese authorities announced on Friday a 7.12 billion yuan ($984 million) fine for Ant Group, ending a years-long regulatory overhaul of the fintech company and marking a key step to concluding a crackdown on the country’s internet sector.” Jack Ma, China giveth and China taketh.
Shares in Alibaba Group opened 5.4% higher in Hong Kong on Monday after Beijing imposed an almost $1 billion fine on Ant Group, the e-commerce company’s fintech affiliate, for violating laws on consumer protection, among other infractions. Investors hope the massive penalty indicates that China’s crackdown on big tech companies—which arguably started when regulators derailed Ant’s IPO in 2020—is now ending. Ant is offering a buyback program with shares valued 70% lower than its scrapped IPO. Reuters
What is your regulatory strategy in Nigeria? Do not just think it does not matter anymore. It seems governments around the world are fining companies with reckless abandon these days. In the US, they can fine in the morning, and settle in the evening, reaping massive revenue for the government.
Nigeria has picked up on that playbook, focusing on customer data and privacy violations. Some banks are already in the crosshairs. Yet, we hope no one will get close to what a special Ant in China will endure as fines.
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The penalty amounts to one of the largest ever fines for an internet company in China.
Ant and its subsidiaries had violated laws and regulations in areas including corporate governance, financial consumer protection, payment and settlement business, as well as anti-money laundering obligations, the People’s Bank of China (PBOC) said in a statement.
Ant said it had completed its rectification work. “We will comply with the terms of the penalty in all earnestness and sincerity and continue to further enhance our compliance governance.” It closed Xianghubao in 2021.
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Ant accepted wholeheartedly, with a ‘thank you’ implied, of course it cannot argue with the boss; it is that simple.
Well, there are two kinds offense, one that hurts the public and the one that hurts authorities. Most times, out of ego or power play, it’s the latter that carries greater weight and penalty, instead of the former. We just need to ensure that fines are commensurate and the capacity to pay is not in doubt, else you destroy faster than you build.
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