Alibaba antitrust probe presents new challenges for China’s regulators 12 years after implementation of anti-monopoly law
- Beijing has been cautious when it comes to regulatory probes but few of the previous cases rival Alibaba’s in terms of business complexity and market size
- Regulatory probes into abuse of market position usually ended in fines being imposed, according to the Post’s review of past cases
With all eyes on the antitrust investigation into Chinese e-commerce giant Alibaba Group Holding, Beijing’s record to date in tackling alleged monopolistic behaviour by big business may not shed any light on how the case may end.
A review of more than 100 Chinese antitrust cases in the 12 years since China’s anti-monopoly law came into effect found that most targeted the pharmaceutical industry and municipal water utilities, according to research by the South China Morning Post.
Beijing has always been cautious when it comes to initiating regulatory probes into the country’s internet platforms, and of the few previous cases in the tech sector, none rival Alibaba’s in terms of business complexity and market size. (Alibaba is the parent company of the Post.)
The State Administration of Market Regulation (SAMR) announced the probe in a one-line statement issued on Christmas Eve. It said the investigation would look into Alibaba’s alleged monopolistic business practices, such as “picking one from the two”, which forces online merchants to choose only one platform as their exclusive distribution channel.
The announcement, which triggered a sharp fall in Alibaba’s stock price in Hong Kong and New York, was emblematic of Beijing’s changing attitude towards Big Tech. Analysts and lawyers told the Post that the investigation will not be the last of its kind and that the lessons learned will very likely be applied by Chinese regulators to other internet platforms.
