Business
Alibaba’s Antitrust Review Concludes Positively: A Three-Year Journey of Compliance and Market Confidence
After three years, the antitrust examination of Alibaba by the government has finally concluded. Alibaba received commendation from the State Administration for Market Regulation for adhering to the antitrust rules, acknowledging the company's full compliance.
China's market regulatory body, the State Administration for Market Regulation (SAMR), commended Alibaba for adhering to antitrust laws. This officially concludes over three years of regulatory investigation that the massive tech company has been under. Alibaba is also the owner of the South China Morning Post.
The green light comes as the Chinese government aims to bolster trust in the private sector, with Beijing's 2024 economic growth goal of 5% appearing vulnerable due to a downturn in the real estate market and frail consumer expenditure. Alibaba, the operator of online marketplaces Taobao and Tmall, is frequently viewed as an indicator of Chinese consumer expenditure and economic health.
Following the investigation and assessment, it has been confirmed that the Alibaba Group has fully ceased its monopolistic practice of 'selecting one out of two', according to a statement from the regulator on its website. The regulator also mentioned that the corrective measures undertaken at Alibaba have yielded positive outcomes. The 'selecting one out of two' strategy, which coerces online sellers into opting for a single e-commerce platform as their sole distribution channel, is deemed as a monopolistic conduct.
"Alibaba stands as a prime example of a private business in China, and its recent announcement has effectively bolstered market assurance," stated Yuanpu Huang, the founding partner of consulting firm, EqualOcean. He further emphasized that even though the local online retail market is fully developed, the potential for Alibaba to regain its stride greatly relies on its forthcoming investments in its international operations, considering its substantial global impact.
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