China’s State Administration for Market Regulation has started investigation on AlibabaGroup for alleged monopoly conduct including implementing an “exclusive dealing agreement.”
The market watchdog said in a brief statement that it is investigating Alibaba over its alleged practice of “choosing one of two”, or forcing merchants to avoid dealing with rival platforms JD and Pinduoduo and to sell exclusively on Alibaba.
“Company business operations remain normal.”“Today, Alibaba Group has received notification from the State Administration for Market Regulation that an investigation has been initiated into the Company pursuant to the Anti-Monopoly Law. Alibaba will actively cooperate with the regulators on the investigation,” Alibaba said in a statement.
Jack Ma one of China’s richest people with an estimated $58 billion fortune to intensifying the troubles of its billionaire founder.He formed Alibaba in 1999 in small digital E-commerce. Thereafter robust shareholding Ant Group in year 2014.
Jack Ma started Ali -pay digital platforms from 2004. It is the country’s internet giants. Alibaba’s Hong Kong stock slides 3.4% after the wednesday probe announcement.
Chinese authorities have opened anti-trust probe into Alibaba market operation and stakeholders, offshoots to find if the shareholders and founders are not against law of land. State Administration for Market Regulation says the Alibaba Group is under investigation over allegations of monopoly.
China steps up pressure on Alibaba with anti-monopoly probe, over alleged monopoly conduct.
It is looking into Alibaba”s policy of “choose one of two,” which requires its business partners to avoid dealing with competitors.
This is greatest blow for Jack Ma’s e-commerce and Fintech Empire.
The probe is crackdown on monopolistic behavior in China’s booming internet space, and the latest setback for Ma, the 56-year-old former school teacher who founded Alibaba and became China’s most famous entrepreneur.
Alibaba is suspected of using its dominant position to urge business partners on its online market to refrain from dealing with its e-commerce competitors.
On Thursday, four financial regulatory authorities say they will jointly provide guidance soon to mobile payment provider Ant Group, an Alibaba affiliate.China’s central bank and three financial watchdogs will conduct regulatory talks with Ant Group within the next few days.
Alibaba Group issued a statement, saying it will actively cooperate with the market regulator’s investigation.
In an economic policy meeting last week, Xi’s leadership had announced a plan to ramp up control over IT firms.