Alibaba says it will invest to retain merchants and customers as it puts antitrust fine behind it

Alibaba executives speak out after an antitrust probe found the company to have abused its market position

Company CEO Zhang Yong said Alibaba will make efforts to retain merchants, including cutting fees for them

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Published: 9:49am, 12 Apr 2021Updated: 2:47pm, 12 Apr 2021

Alibaba Group Holding, the tech giant hit by a record fine from China’s antitrust regulator over the weekend, said on Monday that Beijing’s decision has no material negative impact on the company’s business and it has cleared up any regulatory uncertainties for its future development in a bid to assure investors and merchants.

“We feel very comfortable that there’s nothing wrong with our business, the fundamental business model of a platform company … With this penalty decision, we received good guidance on some of the specific issues under the anti-monopoly law,” Alibaba executive vice-chairman Joe Tsai said during a conference call with investors and reporters.

“I would say that we are pleased that we are able to put this matter behind us.”

Alibaba’s stock rose more than 8 per cent in Hong Kong on Monday morning.

Alibaba founder Jack Ma (left) and CEO Zhang Yong during an event in Nanjing, Jiangsu province on 10 August 2015. Photo: EPA-EFE

The comments came after Alibaba was slapped with a record 18.2 billion yuan (US$2.8 billion/ HK$21.6 billion) penalty by the State Administration for Market Regulation (SAMR).

The Hangzhou-based company was accused of “abusing its dominant market position in China’s online retail platform service market since 2015 by forcing online merchants to open stores or take part in promotions on its platforms,” forcing the market to “pick one from two” in a breach of the country’s anti-monopoly law.