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| Alibaba faces antitrust investigation |
Chinese regulators announced Thursday that China has opened an antitrust investigation at the Alibaba Group and that a meeting of the tech giant Ant Group's subsidiary will take place in the coming days. This is the latest blow to Jack Ma's e-commerce and financial technology empire.
This investigation is part of an accelerated campaign against anti-competitive behavior in the Chinese Internet industry. It's the latest setback for Jack Ma. Ma Yun, 56, founded Alibaba and became the world's most successful businessman. Famous from China.
The investigation came after China suspended Ant Group's proposed $ 37 billion initial public offering (IPO), the world's largest initial public offering, two days before trading began last month. Stock trading in Shanghai and Hong Kong.
In the ruling Communist Party's People's Daily, it is urgent: if monopolies are tolerated and firms are allowed to develop without controls, the industry will not develop in a healthy and sustainable way.
Organizers have warned of the so-called "midway" approach that Alibaba is taking, forcing merchants to sign exclusive cooperation agreements to prevent them from selling products on competing platforms.
SAMR said Thursday that it has opened an app investigation.
Financial regulators will also meet with Ant Group, the financial arm of Alibaba Group, in the coming days, according to another statement released by the People's Bank of China on Thursday.
The statement said: This meeting will direct Ante Group to implement financial control and fair competition, and protect the legitimate rights and interests of consumers.
Ant Group announced that it has received notification from the regulator and that it will adhere to all regulatory requirements. Alibaba said it would work with the law enforcement agency and would continue its normal business.