Alibaba’s Antitrust Review Concludes: A Triumph in Regulatory Compliance After Three-Year Scrutiny

After three years of regulatory inspection, Alibaba's antitrust investigation has finally concluded. The company received commendation from the State Administration for Market Regulation for adhering to anti-monopoly laws, fully acknowledging the company's efforts. The State Administration for Market Regulation commended Alibaba for its adherence to the antitrust authority, fully validating the company's efforts.

China's market oversight body, the State Administration for Market Regulation (SAMR), applauded Alibaba for adhering to antitrust regulations. This marks a formal conclusion to over three years of regulatory examination that has been a cloud over one of China's biggest tech companies. Alibaba is the owner of the South China Morning Post.

The endorsement arrives at a moment when China's administration is attempting to lift morale in the private sector. This is because Beijing's economic growth aim of 5 per cent by 2024 seems to be threatened due to a declining property market and lackluster consumer expenditure. Alibaba, the operator of the Taobao and Tmall online marketplaces, is frequently viewed as an indicator of the level of Chinese consumer expenditure and the health of the economy.

The regulatory body has confirmed, after conducting a review and assessment, that Alibaba Group has entirely ceased its monopolistic practice of 'selecting one out of two'. The statement on its website also mentioned that the corrective measures taken at Alibaba have yielded positive outcomes. The 'selecting one out of two' strategy, where online vendors are compelled to exclusively choose one e-commerce platform as their sole distribution outlet, is identified as a monopolistic tactic.

"Alibaba exemplifies China's private businesses, and this declaration is a much-needed injection of assurance for the market," said Yuanpu Huang, the establishing partner of industry consultancy EqualOcean. He further stated that, even though the local online retail market is fully developed, Alibaba's potential to restore growth will primarily hinge on its future financial commitments in its foreign operations, considering its standing as a firm with substantial global sway.