(Yicai Global) Feb. 8 -- Vipshop Holdings was fined CNY3 million (USD464,500) by Chinese regulators for monopolistic practices. The e-commerce firm, well known for its online discounts, said it accepts the decision and will overhaul its operations.

Vipshop gathered information about vendors with outlets on other platforms beside its own between last August and December, pushing the merchants to choose between them, the State Administration for Market Regulation said today. If the vendors continued to trade on other sites, Vipshop blocked traffic to their online stores and removed goods from their shelves, the watchdog said.

China has been cracking down on monopolistic practices by internet firms since the second half of last year and yesterday released its first finalized antitrust guidelines for the sector. Many big names, including e-commerce titan Alibaba Group Holdings, are being probed and face having their wings clipped.

Vipshop’s behavior greatly disrupted the normal market order and constitutes unfair competition, the SAMR said. Vipshop does not dispute the outcome of the probe, will promptly settle the fine and will set about correcting its practices, the Guangzhou-based firm said on its microblogging Weibo account.

Last September, rival Aikucun reported Vipshop to the authorities after hundreds of merchants said that Vipshop asked them not to trade on both platforms or face being kicked out of Vipshop.

Vipshop’s stock price [NYSE: VIPS] closed down 1.4 percent at USD33.10 on Feb. 5, giving the firm a market capitalization of USD22.4 billion.

Editor: Kim Taylor