Alibaba hit with antitrust probe
China’s State Administration for Market Regulation opened an investigation into the company over monopolistic practices
Stocks impacted: Alibaba Group (9988)
Chinese regulators said on Thursday they have launched an investigation into Alibaba Group for suspected monopolistic behavior. In particular, the State Administration for Market Regulation said that it is investigating the e-commerce firm over its choosing the so-called one from two policy, in which merchants are forced to sell exclusively on Alibaba and skip rivaling platforms JD.com and Pinduoduo. Alibaba confirmed the regulator’s investigation in a public statement and said business operations remain normal. Besides, Ant Group, Alibaba’s affiliate, has been summoned by a group of finance authorities to discuss its “compliance” work. Amid the reports, Hong Kong-listed shares of Alibaba dropped more than 8% Thursday while its York-traded shares lost over 3% in after-hours trading overnight.
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