The reason is that the company, according to the authorities, has abused its dominant position in the market and an investigation has been ongoing since December, state Chinese media reports.
The authorities are cracking down on the alleged demands that Alibaba's sellers who want to sell their products on the company's popular e-commerce platforms are not allowed to post their products for sale on other sites at the same time.
The fine corresponds to four percent of Alibaba's sales in 2019, which amounted to 455.7 billion yuan, according to the state-run New China news agency.
The pressure on Alibaba and other large Chinese technology companies has increased as their influence over Chinese society has grown. Consumers can now communicate, shop and pay bills via companies' online platforms.