Alibaba’s Antitrust Review Concludes: A Three-Year Journey Ends with Praise from China’s Market Regulator

After three years under government examination, Alibaba's antitrust investigation has finally concluded. The Market Regulation State Administration commended Alibaba for its adherence to antitrust regulations, giving the company complete acknowledgement.

China's market regulatory body, the State Administration for Market Regulation (SAMR), commended Alibaba for adhering to the antitrust regulations, effectively concluding over three years of regulatory investigation into one of China's biggest tech companies. Alibaba is the proprietor of the South China Morning Post.

The green light arrives during a period where the Chinese government is working to enhance trust in the private sector. This comes as Beijing's economic growth goal of 5% for 2024 appears threatened due to a downturn in the real estate market and sluggish consumer expenditure. Alibaba, the operator of online marketplaces Taobao and Tmall, is frequently viewed as a gauge for Chinese consumer spending and economic health.

Following a thorough review and assessment, the regulator announced on its web portal that Alibaba Group has definitively put an end to its monopolistic practice of 'selecting one out of two'. The regulator further stated that the corrective measures implemented at Alibaba have yielded positive outcomes. The 'selecting one out of two' strategy, where online sellers are coerced into exclusively partnering with one e-commerce platform for distribution, is identified as a monopoly conduct.

"Alibaba exemplifies private businesses in China, and this proclamation bolsters market assurance at a critical time," voiced Yuanpu Huang, the originating partner of industry consultancy EqualOcean. He further elaborated that despite the homegrown e-commerce market being fully developed, Alibaba's potential to recuperate largely hinges on its forthcoming investments in international business, considering its considerable global impact.