The Chinese government on Wednesday kicked off an investigation into Alibaba group for alleged monopolistic practices at Alibaba Group Holding Ltd. and summoned its affiliate Ant Group Co. over financial regulations of billionaire owner Jack Ma’s internet empire.
The State Administration for Market Regulation is investigating the e-commerce giant for what it calls the “choosing one from two” practice, China’s top antitrust watchdog People’s Bank of China said in a separate statement without mentioning details on penalties.
Over the past few months, Alibaba and its rivals like Tencent Holdings Ltd have been facing increased scrutiny from regulators for capturing almost all aspects of the everyday lives of the Chinese people.
Although the government officials have not laid down a clampdown against such firms, anti-monopoly rules in China are now threatening to upset the status quo by stepping up official efforts and imposing scenarios like fines to a break-up of industry leaders and implement “fair competition”.
Draft rules released in November give the government unusually wide latitude to rein in tech entrepreneurs like Ma who until recently enjoyed an unusual amount of freedom to expand their empires, a Bloomberg report stated.
Meanwhile, Alibaba subsidiary Ant received a notice to “seriously study and strictly comply with all regulatory requirements and commit full efforts to fulfil all related work.”
Article By :indianavaz.com