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| Alibaba ignores the $ 2.75 billion antitrust fine |
The CEO of Alibaba said on Monday that he does not expect the Chinese antitrust campaign to have any material impact. China urges Alibaba to reform its dealings with businessmen.
The statement was released after regulators imposed a $ 2.75 billion fine on the e-commerce giant for abusing market dominance.
Since the billionaire founder of Alibaba publicly criticized the Chinese regulatory system in October, it has come under intense scrutiny.
CEO Daniel Zhang (Daniel Zhang) said: As part of the general reshuffle that regulators are seeking, Alibaba is making it easier for traders to respond.
Beijing hopes Alibaba will no longer force traders to choose between trading with it or between competing platforms. Critics say this approach has helped Alibaba become the largest e-commerce operator in China.
Alibaba executives said they were still confident that the government would support the government as a whole, despite the highest fine of 18 billion yuan ($ 2.75 billion) and measures ordered by regulators. "
Vice CEO of Alibaba said: I have confirmed our business model and we are confident that the basic business model as a platform company has nothing to complain about.
The company's share price rose about 8% in the afternoon of trading in Hong Kong, and its market value rose by $ 48.5 billion, raising hopes that it may make its largest single-day payout in the past three months.
In addition to imposing fines among the highest antitrust penalties in the world, SAMR urged Alibaba to make widespread corrections to improve internal compliance and protect consumer rights.
Since further expansion of market share is limited, necessary corrective actions may limit Alibaba's revenue growth.
SAMR said: Since 2015, Alibaba has found that its merchants are banned from using other online e-commerce platforms.
The organizer said: This practice has previously been described as illegal by SAMR. It impeded the free flow of goods and harmed merchants' commercial interests, thus violating Chinese antitrust laws.
Ali Baba said: You accept fines and keep their promises. In addition to reviewing mergers and acquisitions of companies that his colleagues also face, he does not want antitrust authorities to conduct any further investigations.
She added, "Alibaba does not need exclusivity to maintain its distributors." In the past, she added, this exclusive offer only covered a few of Tmall's flagship stores.
The fine is more than double the $ 975 million that Qualcomm paid for noncompetitive behavior in 2015.
Analysts said the $ 2.75 billion fine imposed on Alibaba should be real because it represents a reasonable price that can be paid to start the reconciliation process with the Beijing regime.
"Alibaba remains an attractive and convenient way to invest in China's fast-growing economy," they added. Given the various strengths of the underlying business, most traditional approaches make the stock undervalued.