Alibaba Group, one of China’s leading e-commerce companies, has secured a significant regulatory victory, receiving approval from the country’s antitrust watchdog, Bloomberg has reported.
This marks a turning point for the company after years of intense scrutiny and fines.
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The State Administration for Market Regulation (SAMR) announced that Alibaba has successfully addressed the monopolistic practices that prompted an investigation in 2020.
According to the news agency, the company has taken steps to improve its services, foster competition and eliminate exclusive arrangements with merchants.
The official endorsement comes as China is seeking to support its private sector and technology industry.
The government has signalled a shift in its regulatory approach, aiming to create a more conducive environment for businesses.
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By GlobalDataThe antitrust probe into Alibaba was part of a broader crackdown on China’s internet giants.
In 2021, the company was fined a record $2.8bn for abusing its market dominance. However, the SAMR has now recognised Alibaba’s efforts to rectify its past practices.
Alibaba has welcomed the development, stating that it will continue to focus on innovation, compliance and creating value for society.
The company aims to contribute to the healthy development of the platform economy in China.
While the regulatory approval is a positive sign, the impact of previous crackdowns on the industry remains evident.
Funding for startups has slowed, and businesses are more cautious about exploring new growth opportunities. The ongoing economic downturn in China has affected consumer spending, posing challenges for e-commerce companies.
The approval of Alibaba’s regulatory compliance marks a significant milestone for the company and China’s technology sector. It suggests that the government is seeking to balance its regulatory oversight with a supportive approach to private enterprise.
