China has launched an investigation into Alibaba Group for suspected monopolistic behavior, regulators said on Thursday.
Regulators had previously warned the e-commerce giant about the so-called “choosing one from two” practice. Under which requires merchants to sign exclusive cooperation pacts preventing them from offering products on rival platforms.
A probe has been began Alibaba’s “choosing one from two” practice. The State Administration for Market Regulation (SAMR) said in an online statement.
Financial regulators also will meet with Alibaba’s Ant Group within the coming days. This is in line with a separate online statement by the People’s Bank of China on Thursday.
The meeting is to “guide Ant Group to implement financial supervision, fair competition and protect the legitimate rights and interests of consumers,” the statement said.
Ant said it’s received a notice from regulators, which it’ll “seriously study and strictly fits all regulatory requirements and commit full efforts to fulfil all related work.”
Regulators became increasingly uncomfortable with parts of Ant’s sprawling empire. Chiefly its most lucrative credit business that contributed near 40% of Ant’s revenue within the half of the year.
China’s Ant Group on Thursday said it has received a meeting notice from regulators, and will strictly comply with all regulatory requirements.
China’s financial watchdogs including the central bank and banking. And also insurance regulator said they will conduct regulatory talks with Ant Group within the next few days. While the country’s market regulator on Thursday said it has launched an investigation into Alibaba Group for alleged monopoly conduct.
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