The e-commerce giant Alibaba has been charged with a massive $2.78 billion fine by China, over practices deemed to be an abuse the company’s dominant market position.

The fine was imposed by the State Administration for Market Regulation after concluding an investigation into Alibaba that began in December. The probe by the state authority was focused on Alibaba’s alleged practice of requiring that merchants who wish to sell their wares on its popular platforms do so exclusively, avoiding rival e-commerce sites.

The size of the penalty was determined after regulators decided to fine Alibaba four per cent of its 2019 sales of 455.7 billion yuan, reported Xinhua news agency in China.

The company, founded by Jack Ma, said that it has accepted the penalty imposed by the government and pledged to outline plans for bringing its operations in compliance.

Alibaba and other leading tech companies in China have come under pressure amid growing concern over their influence in the country, where tech-savvy consumers use leading platforms to communicate, shop, pay bills, book taxis, take out loans and perform a range of other daily tasks.

The e-commerce company, in particular, was accused with allegations of anti-competitive behaviour and misuse of consumer data.

The giant is under scrutiny since the last October when co-founder Jack Ma criticised Chinese regulators as being behind the times after they expressed growing concern over the push into loans, wealth management, and insurance by Alibaba's financial arm, Ant Group.

The company also said that it would hold a conference call with investors on Monday to share its “thoughts and plans for the long-term healthy development of our business in the future.”

“We are committed to ensuring an operating environment for our merchants and partners that is more open, more equitable, more efficient and more inclusive in sharing the fruits of growth,” it said.