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Business

Alibaba claims it is unaware of any other inquiries into the company and does not foresee any changes to its business model

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Executives from the e-commerce behemoth have stated that the company’s future priority will be on improving consumer and merchant services “while remaining compliant with regulators.”

Alibaba Group has stated that it is “unaware” of any other antitrust investigations into the business being undertaken by the Chinese government. This was reported during an analyst call on April 12th, shortly after the company was fined a record $2.8 billion for its business practises.

According to Bloomberg, “apart from inquiries into mergers, acquisitions, and strategic investments that cover the entire internet sector, the firm is not aware of any other investigations into its business by the State Administration for Market Regulation.”

Executives from the e-commerce behemoth have stated that the company’s future priority will be on improving consumer and merchant services “while remaining compliant with regulators.”

Alibaba Venture Capital They are also “happy” to have the matter “behind us,” according to Joseph Tsai. “We were subjected to this scrutiny…,” she said. Big internet companies are helping the economy a lot, and we’re right in the centre of it, supporting government policy.”

Regulators will now be “keen to look at other fields where unfair rivalry exists,” according to Tsai. He went on to say that they’re still collaborating with the government on data privacy and security.”

Alibaba’s antitrust inquiry was completed in four months, while similar investigations in Europe and the United States take years. This is a “strong warning to China’s large companies and leaders that anti-competitive conduct will have consequences,” according to the paper.

According to Reuters, Alibaba CEO Daniel Zhang claims that the investigation would not have a “material effect” on the company’s exclusivity agreements with merchants.

Alibaba Group Holdings’ stock rose 9% in Hong Kong after the matter was resolved, reducing doubt and because the fine and orders “weren’t more onerous,” according to the wire.

Zhang added that as part of the remedial steps, the firm would lower merchant entry barriers and business costs on its platforms.

Alibaba was scrutinized in October 2020 after its founder, Jack Ma, publicly criticized China’s regulatory framework at the time.


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