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.