Alibaba , the firm founded by Jack Ma , is currently one of the most powerful in the world in the e-commerce sector. And apparently the company used unscrupulous methods in order to monopolize the market. This prompted the main Chinese market watchdog to launch an investigation against her.
Alibaba's “ choose one out of two” policy is clearly anti-competitive, according to the charges. Moreover, many Chinese platforms, such as Pinduoduo and Jingdong Mall, pay the costs.
And according to an article in the official journal of the Communist Party of China, this investigation , intended to eradicate all forms of monopolization in the e-commerce sector, can only be of great benefit to the health of this very buoyant sector. .
"Choose one of two", Alibaba's unfair method
In short, this policy pushes merchants to only sell their products on the Alibaba platform. Competitors are subsequently sidelined, which guarantees Alibaba's monopoly. And the Chinese authorities do not want to stand idly by in the face of this situation.
Indeed, last Thursday, through a brief press release, the Chinese gendarme for market regulation officially announced that an investigation into this monopolization strategy will be opened. For its part, Alibaba said it is not opposed to it and will cooperate with investigators.
Note that after the announcement, the company's shares fell by at least 8% on the Hong Kong Stock Exchange. A group of financial authorities has also called on Ant Group , the Alibaba subsidiary, to talk about its "compliance" work. It should be noted that Ant Group has undertaken to do everything possible to reduce the risk of indebtedness, following the sudden cancellation by the Chinese authorities of its initial public offering.
A big step in the fight against monopolization in China
In China, some claim that giants such as Alibaba monopolize the sectors in which they operate. However, the authorities have never moved a finger. Finally, until now, with this investigation which is a crucial step, which would make it possible to change the situation.
Still according to the article published in the official journal of the Chinese Communist Party, this investigation will therefore only help the economy of various companies operating in the field of electronic commerce to flourish.