China's State Administration for Market Regulation imposed an administrative penalty on Alibaba Group on Saturday for implementing an "exclusive dealing agreement." 

Alibaba was fined 18.2billion yuan (US$2.8 billion) equal to 4 percent of the company’s revenue in mainland China in 2019.

Alibaba said it “accepts the penalty with sincerity and will ensure our compliance with determination” in an open letter released shortly after the penalty announcement.

“We will further strengthen our focus on customer value creation and customer experience,” Alibaba said in the letter. “As well as continuing to introduce measures to lower entry barriers and business costs of operating on our platforms.”