SUPPLIERS | Staff Reporter, China

China starts anti-monopoly probe on Alibaba

Analysts believe that e-commerce will be hit the hardest by anti-trust regulations.

China’s State Administration for Market Regulation (SAMR) has begun investigation on Alibaba Group on a suspected breach of the country’s Anti-Monopoly Law, a bourse filing revealed based on a notice received by the company.

Alibaba said it will actively cooperate with the SAMR’s investigation, and that its business operations remain normal.

OCBC Investment Research commented that anti-trust regulations will likely have the greatest impact on the e-commerce vertical, as the use of subsidies/discounts may constitute unfair competition.

“[A] strict enforcement against “Two-Choose-One” (i.e. forced exclusivity, as per the above allegations) practices, and potential impact on recommendation feeds could pose a potential headwind to e- commerce leaders,” the report stated.

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