China’s market regulator said Thursday it has launched a government probe into one of the world’s most valuable internet companies by opening an investigation against e-commerce giant Alibaba.
In a boring statement, the state administration told Market Regulation that Alibaba launched an investigation amid reports that it was engaged in monopolistic behavior, such as imposing unreasonable restrictions on merchants or other users of its platform.
Representatives from China’s Hangzhou-based Alibaba did not immediately respond to a request for comment.
The probe is part of widespread official pressure against Alibaba co-founder Jack Ma’s business empire and is considered one of China’s richest men.
In November, the market regulator announced proposed rules to combat anticompetitive behavior in Internet companies. Earlier that month, Chinese regulators blocked Anti Group’s initial public offering fur, canceling the list of Alibaba’s finance-focused sister company, the largest list in history. The move comes after Mr Mae publicly criticized Chinese regulators for being too restless for people at economic risk.
On Thursday, four regulatory agencies, including the country’s central bank, said officials would meet with Antony soon to discuss new oversight for the financial industry. Ant said in a statement that it would “seriously study and strictly adhere to all regulatory requirements and make every effort to complete all related works.”
Alibaba has a strong position in shopping online shopping in China. It operates the Taobao Marketplace, an online marketplace where merchants set up electronic stands to sell to customers. Alibaba’s Tamil platform caters to major Chinese and global brands. Alibaba makes money by charging vendors for hosting and services in the markets.
The People’s Daily, the main newspaper of the Chinese Communist Party, endorsed the investigation behind the article, which appears to be a sign of widespread support and coordination behind the move.
“This is an important step in strengthening the antimonopoly oversight in the Internet sector,” said an article published on the paper’s website on Thursday morning. “This will be beneficial for controlling the systematic sector and promoting the long-term healthy development of the platform.”
This is a developing story. Check back for updates.
Chris Buckley contributed to the report.
