December 28, 2020
The non-governmental groups in China decided to investigate the giant Alibaba. It has been estimated that the reason for this antitrust probe is the anti-competition practices that the company does for a long time.
It was also reported that Beijing decided to activate this probe because there are allegations about monopolistic practices within the company. According to close sources, the company will also face backlash due to a lack of supervisory and guidance.
An investigation that includes more than two policies
This Tuesday, the State Administration for Market Regulation revealed that Alibaba is being investigated for more serious things than wrong policies.
According to them, forcing merchants to sell on their platform while refusing to sell on JD.com and Pinduoduo is a serious crime worth investigating.
Alibaba will cooperate
Interestingly, Alibaba and its finance spinoff, Ant Group did not refuse to collaborate. The pressure that they received at the beginning somehow forced them to change their initial opinion about the fraud allegations.
The companies have been warned so many times, but they refused to listen. This is their endgame and that is why they chose to listen. Both, Alibaba and Ant Group are ready to study the requests and at the same time comply with them.
Nothing is changed with Alibaba’s operations
Although Alibaba is under investigation for breaking some of the Anti-Monopoly Laws the company’s operations won’t change.
After confirming that the company is under investigation the spokesman also declared that the business operation will continue to run smoothly, without interruptions.
On the other hand, the company’s shares after the investigation became public decreased by more than 8 percent on the Hong Kong Stock Exchange site.
The problem that Alibaba is facing right now did not surprise a lot of people. That is simply because a lot of people suspected that something like this would happen. After all, they did the things corporations do when they develop under loose regulations.
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