China's Alibaba says to lower entry barriers after record antitrust fine



© Reuters. FILE PHOTO: The logo of Alibaba Group is seen at its office in Beijing

SHANGHAI (Reuters) -Alibaba Group will introduce measures to lower entry barriers and business costs faced by merchants on e-commerce platforms, CEO Daniel Zhang said on Monday, after an antitrust probe found the firm had abused its dominant market position.

China on Saturday imposed a record 18 billion yuan ($2.75 billion) fine on Alibaba (NYSE:) amid a crackdown on technology conglomerates, signalling a new era after years of laissez-faire approach.

The e-commerce giant has come under intense scrutiny since billionaire founder Jack Ma’s public criticism of the Chinese regulatory system in October.

The State Administration for Market Regulation (SAMR) said it had determined Alibaba, which is listed in New York and Hong Kong, had prevented its merchants from using other online e-commerce platforms.

The group does not expect any material impact on its business from the change of exclusivity arrangement imposed by regulators, Zhang said in an online briefing.

Alibaba and its peers remain under review for mergers and acquisitions from the market regulator, Vice Chairman Joe Tsai told the briefing, adding he was not aware of any other anti-monopoly-related investigations.

The impact of the regulator’s fine on Alibaba will be reflected in the group’s net income in the March quarter, Chief Financial Officer Maggie Wu said.

($1 = 6.5522 )

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  What stores and restaurants are open Memorial Day? Because of COVID-19 fewer businesses than past years

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here