China’s market regulator is investigating Alibaba, the owner of Aliexpress, because of the alleged monopoly behavior. The main objective of the antitrust lawsuit is the company’s policy that mandates sellers to have exclusive rights if they want to do business on their platforms, veto participation in competitor e-commerce sites.
In November, the Chinese watchdog introduced new laws aimed at restricting the data collection of local companies, among other activities that could be abusive to their consumers. .
Companies like Tencent, JD.com and Meituan were also convened to a meeting this week to discuss nine rules to avoid anti-competitive practices. The main problem is the ban on selling products below cost in order to eliminate competitors.
Ant Goup is also a target for Chinese regulators
Entrepreneur Jack Ma was investigated by Chinese regulators Ant Group, whose IPO was blocked in November.
The blockade is seen as an attempt to bring fintech’s behavior closer to the banks’ behavior – which would result in the company needing more capital to fund at least 30% of the total capital transferred through loan amount.
Concerning Alibaba’s antitrust lawsuit, the company released a statement saying it had received the agency’s notice and would actively cooperate with regulators in the investigation.
Also, it doesn’t seem like these are the only companies struggling in 2020. The year is particularly tough for other tech giants: Google, Facebook, Apple and many others are also suffering from FTC. targeting in the United States, on charges of anti-competitive practices.
With the news of the latest antitrust lawsuit in China, Alibaba shares fell more than 8% on the Hong Kong stock exchange.