“A kindReference information, China State Market Supervision Administration[[[[Sam]Investigation started [into] Alibaba Group is suspected of monopolistic behavior, including the execution of an “exclusive transaction agreement.” “This brief note, published on December 24 by the state news agency Xinhua News Agency, is the entire move to scale down China’s most powerful online giant. Even an additional $6 billion in stock repurchases announced three days later prevented it. Its market value has fallen. By December 28, it had fallen by 1
Alibaba’s investigation is the first such investigation of Chinese e-commerce. The time has come. After a month, the relevant departments abruptly stopped the US$37 billion initial public offering (IPO), and a few days before the regulator told Ant Financial to reduce lending and wealth management activities, this was China’s way of suppressing the two companies’ gorgeous co-founder Jack Ma.
It might be so.Ant IPO After Jack Ma compared China’s state-owned banks to pawn shops, China was in trouble. Angela Zhang of the University of Hong Kong said that Chinese regulators often launch lightning crackdowns to stop other people’s misconduct. But the survey also shows that people are worried about the online economy because it is both bubbling and increasingly concentrated. Following investors’ analysis of Xinhua Securities, the share prices of other Internet giants such as Tencent and Meituan have fallen almost the same as Alibaba.
The complaints against Alibaba focused on the practice of getting merchants or brands to sign contracts to sell products exclusively on its platform. Companies operating in rival markets may face the risk of Internet traffic shifting from online stores in Alibaba’s Tmall mall to other sellers.
Such arrangements are not new.In 2015 Jd.com, a smaller electronic collection supported by Tencent, has filed a lawsuit against Alibaba for similar issues. They are not unique to Jack Ma’s company. Jingdong.com in the same year. Since then, regulators have largely ignored these and other complaints. Why turn?
For a long time, China’s sensational resisters have been destroying what is considered a world-class industry and supporting Beijing. Now, just like in the West, they worry that some giants control essential services-e-commerce, logistics, payment, taxi, food delivery, social media, messaging. Common practices (such as selling products below cost to attract customers) seem to be more troublesome in this industry, where the top three companies control 90% of the market, not the less concentrated companies .November Sam He said that depending on the consumer’s spending power, it may be illegal to offer different prices to shoppers based on their spending power.
The reason for China’s recent enthusiasm (except for Jack Ma’s sarcasm) is greater trust. Sam Established in 2018, it was formed by the merger of offices composed of three regulatory agencies. It is still difficult to keep up with the rapidly changing online market. Most employees are busy evaluating mergers and acquisitions. However, it has more expertise and manpower than in the past, and it seems eager to deploy them.
This article appears in the “Business” section of the print edition under the heading “Moqian, Horse Problem”