Business
Alibaba’s Antitrust Inquiry Ends with Praise from Chinese Regulator: A Three-Year Journey of Compliance and Market Confidence
The antitrust investigation into Alibaba concludes after three years of government oversight. Alibaba received commendation from the State Administration for Market Regulation for adhering to the antitrust regulations, thereby fully acknowledging the company.
China's market regulatory body, the State Administration for Market Regulation (SAMR), has commended Alibaba for adhering to the antitrust regulations. This marks the conclusion of over three years of regulatory scrutiny faced by one of China's leading tech companies. Alibaba is also the proprietor of the South China Morning Post.
The endorsement arrives as China's government aims to strengthen faith in the private sector, with fears that Beijing's economic growth goal of 5% for 2024 may be jeopardized due to a downturn in the real estate market and sluggish consumer expenditure. Alibaba, the operator of the Taobao and Tmall online platforms, is frequently viewed as a barometer of Chinese consumer expenditure and economic health.
After a thorough review and assessment, the regulator confirmed via an official statement on its website that Alibaba Group has fully ceased its monopolistic 'choose one out of two' approach. The regulator further stated that the corrective measures taken at Alibaba have yielded positive outcomes. The 'choose one out of two' strategy, where online businesses are compelled to select only one e-commerce platform as their sole distribution outlet, is categorized as monopolistic conduct.
"Alibaba exemplifies private businesses in China, and this declaration is a much-needed uplift for market morale," stated Yuanpu Huang, the founding associate of industry consultation agency EqualOcean. He further explained that although the local online commerce market is fully developed, the capacity of Alibaba to regain its stride will primarily hinge on its forthcoming investments in its international operations, considering its standing as a company with extensive global impact.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.