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Alibaba says it is unaware of other investigations into company, expects no impact on business model

Executives of the e-commerce giant also said that going forward focus will be on better services for customers and merchants, “while complying with regulators.”

April 12, 2021 / 10:58 AM IST

Alibaba came under the scanner in October 2020 after founder Jack Ma publically criticised the Chinese regulatory system that month. (Image: Reuters)

Alibaba came under the scanner in October 2020 after founder Jack Ma publically criticised the Chinese regulatory system that month. (Image: Reuters)

Alibaba Group has said it is “unaware” of any other probes into the company being conducted by the Chinese anti-trust regulator. This was stated in an analyst call held on April 12, on the heels of a record $2.8 billion fine for its business practices.

“Apart from inquiries into mergers, acquisitions, and strategic investments that span the entire internet industry, the company isn’t aware of any other investigations into its business by the State Administration for Market Regulation,” Bloomberg quoted executives state.

Executives of the e-commerce giant also said that going forward focus will be on better services for customers and merchants, “while complying with regulators.”

Alibaba VC Joseph Tsai further said they are “happy” to have the matter “behind us.” Adding: “We experienced this scrutiny … large internet companies are doing a lot for the economy and we’re in the middle of this, promoting government policy.”

Tsai said that regulators will now be “keen to look at other areas where unfair competition exists.” He added that they are also working with the government on data privacy and protection.”

Close

Notably, Alibaba’s anti-trust probe was concluded in four months, while similar investigations take years in Europe and the United States. The report noted this is a “clear message to China’s large corporations and leaders that anti-competitive behavior will have consequences.”

Reuters further reported Alibaba CEO Daniel Zhang says that the company does not expect the probe to necessitate “any material impact to its exclusivity arrangements with merchants.”

Shares of Alibaba Group Holdings rose 9 percent in Hong Kong as the matter is now closed – removing uncertainty and because the fine and orders “were not more onerous,” the wire added.

As part of the remedial measures, the company will lower entry barriers and business costs of merchants on its platforms, Zhang added.

Alibaba came under the scanner in October 2020 after founder Jack Ma publically criticised the Chinese regulatory system that month.
Moneycontrol News
first published: Apr 12, 2021 10:58 am

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