Alibaba shares rose 6 percent in the US after the e-commerce giant imposed a $ 2.8 billion fine by Chinese regulators as a result of an anti-monopoly investigation.
Alibaba’s Hong Kong-listed shares closed up 6.5 percent on Monday.
Chinese regulators launched an anti-monopoly investigation into Alibaba in December, which investigated the company’s need for its merchants to ban them from selling products on the e-commerce platform.
China State Administration for Market Regulation Said on saturday The practice competes in China’s online retail market and “violates the legitimate rights and interests of merchants and consumers on platforms.”
Alibaba CEO Daniel Zhang said on Monday that he does not expect a material impact on the company from the change of this exclusivity regime.
The execution also said that their China-headquartered company Alibaba will introduce new measures to reduce entry barriers and costs for businesses and merchants on the platform. The CEO said that the company would continue to expand in smaller Chinese cities and rural areas as well.
In recent years, Chinese officials have become increasingly concerned with the power of their biggest technology giants.
The regulatory inquiry into Alibaba founder Jack Ma’s empire has been voided after the billionaire tossed China’s regulatory system into an October speech that apparently angered Beijing officials. After a long time, regulators did not put the plug on what would be Ant Group’s record-setting initial public offering, setting up financial technology giant Ma.
Alibaba’s executive vice president Joe Tsai said on Monday that he was not aware of any further investigation into the anti-monopoly law.
“We are happy that we are able to put this matter behind us,” Tsai said.
But the execution also stated that Alibaba and its partners are subject to inquiries from regulators on mergers, acquisitions and strategic investments as part of the review process.
In addition to the fine, which is about 4 percent of Alibaba’s 2019 revenue, regulators said the e-commerce titan would have to file a self-test and compliance report to SAMR for three years.
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