Alibaba’s regulatory “rectification” process has come to a successful conclusion after three years, following an antitrust fine levied on the tech giant in 2021, China’s State Administration for Market Regulation (SAMR) confirmed on Friday. Shares of Alibaba responded positively, rising 4.01% in premarket trading in the U.S.
The antitrust fine, amounting to 18.23 billion yuan ($2.6 billion), was imposed by the SAMR due to monopolistic practices where Alibaba forced merchants to choose between its platform and competitors, preventing them from working with both. This “choose one” policy was seen as a means for Alibaba to strengthen its market dominance unfairly.
Since receiving the fine, Alibaba has been under the supervision of the SAMR, which has been overseeing the company’s compliance with the antitrust regulations. According to a Google-translated statement from the SAMR, this period of rectification has produced “good results,” and Alibaba has ceased its monopoly behavior of the “choose one of two” practice.
The successful completion of this regulatory overhaul marks a significant step for Alibaba in aligning with market competition norms set by the Chinese authorities. This news story continues to develop.
-Contribution by CNBC’s Christine Wang.
Original Story https://www.cnbc.com/2024/08/30/alibaba-shares-jump-as-it-completes-three-year-regulatory-overhau.html
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