Alibaba Investigated over Alleged Monopoly

The Chinese government announced that they are starting an investigation on the alleged monopolistic practices at Alibaba Group Holding Ltd. and summoned affiliate Ant Group Co.

The Chinese government announced that they are starting an investigation on the alleged monopolistic practices at Alibaba Group Holding Ltd. and summoned affiliate Ant Group Co. 

The State Administration for Market Regulation was the agency that would be investigating Alibaba while Ant Group would be investigated in conjunction with the People’s Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, and State Administration of Foreign Exchange.

According to the State Administration for Market Regulation, Alibaba engaged in monopolistic practices, such as restricting vendors from selling merchandise on other platforms but gave no further details.

Ant Group responded that it would “diligently study and strictly comply with regulatory departments’ requests” after the State Administration for Market Regulation said they would supervisory and guidance talks.

Chinese Regulators had already warned Alibaba about the practice under which merchants are required to sign exclusive cooperation pacts to prevent them from offering products on rival platforms.

After the investigations were announced, Alibaba shares went down to 5.48% on the Hong Kong stock exchange.


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