China’s market regulator has officially concluded its antitrust review of Alibaba Group Holding, granting the e-commerce giant full recognition after a three-year scrutiny period. The State Administration for Market Regulation (SAMR) concluded its review with a positive nod to Alibaba, which had faced a significant US$2.8 billion fine in 2021 for monopolistic practices. This development comes just days before Alibaba’s Hong Kong-listed stock is set to become available to mainland investors, marking a significant milestone for the company.
In a statement released on its website, SAMR praised Alibaba for its compliance with regulatory demands, noting that the company has fully addressed the concerns surrounding its business practices. This approval marks the end of a stringent regulatory period for Alibaba, which has been under the spotlight due to its alleged monopolistic tactics. The regulator highlighted that Alibaba has ceased its “picking one from two” practice—a tactic where online merchants were forced to choose exclusively one e-commerce platform as their sole distribution channel. This behavior was deemed as monopolistic and was a central concern during the regulatory review.
The conclusion of this review is seen as a strategic move by Chinese authorities to bolster confidence in the private sector amid economic uncertainties. Beijing is aiming to achieve a 5 percent economic growth target for 2024, but this goal is under threat due to a slump in the property market and sluggish consumer spending. Alibaba, which operates major online marketplaces such as Taobao and Tmall, is considered a barometer for Chinese consumer spending and overall economic health.
Yuanpu Huang, founding partner of industry consulting firm EqualOcean, commented on the development, noting that the approval comes as a timely boost for market confidence. Huang remarked that although the domestic e-commerce sector has matured, Alibaba’s ability to regain its momentum will significantly hinge on its future investments in international markets. As a company with substantial global influence, Alibaba’s strategic focus on expanding its overseas presence will be crucial for its growth trajectory moving forward.
The end of this regulatory chapter is expected to enhance Alibaba’s market position and investor sentiment, paving the way for new opportunities as it continues to navigate the evolving economic landscape in China and beyond.