End of Alibaba’s Antitrust Review: SAMR Praises Chinese Tech Giant for Compliance after Three Years of Scrutiny

After three years of governmental examination, Alibaba's antitrust investigation has now concluded. The State Administration for Market Regulation commended Alibaba on its adherence to the antitrust authority, fully acknowledging the company's efforts.

China's market oversight body, the State Administration for Market Regulation (SAMR), has commended Alibaba for adhering to antitrust laws. This marks the conclusion of over three years of regulatory investigation into one of China's biggest technology companies. Alibaba is the owner of the South China Morning Post.

The endorsement arrives during a period where Chinese officials are attempting to stimulate trust in the private sector. This comes as Beijing's goal of reaching 5 per cent economic growth by 2024 seems to be in jeopardy due to a decline in the real estate market and low consumer expenditure. Alibaba, the operator of online marketplaces Taobao and Tmall, is frequently viewed as a representative of Chinese consumer expenditure and economic health.

Following the assessment, the Alibaba Group has entirely ceased its monopolistic practice of 'selecting one out of two,' according to the regulator's website announcement. The regulator further noted that Alibaba's corrective measures have yielded positive outcomes. The tactic of 'selecting one out of two,' where online sellers must pick a single e-commerce platform as their sole distribution outlet, is regarded as a monopoly behavior.

"Alibaba stands as a notable private company in China, and this statement comes as a positive reinforcement to market assurance," stated Yuanpu Huang, the founding associate of industry consulting organization EqualOcean. He further mentioned that although the local e-commerce market has achieved a stable state, the potential resurgence of Alibaba will heavily rely on its forthcoming investments in its international operations, considering its reputation as a firm with substantial global impact.