Alibaba hit by Chinese antitrust probe

Alibaba Group Holding Ltd, owned by Chinese billionaire Jack Ma, saw its shares hit on Thursday after China’s State Administration for Market Regulation announced it is investigating the technology giant over monopolistic behaviour. The investigation into the firm is the first of its kind for a Chinese tech company, with regulators saying the probe will focus on practices including Alibaba’s tactic of using exclusive agreements with merchants to force them to only sell their products on its platform. Meanwhile, China’s financial regulators have also arranged a meeting with Ant Group, Alibaba’s financial technology spinoff, to provide guidance over competition and consumer protection rules after the government stepped in to block Ant’s US$37bn IPO on the Hong Kong and Shanghai stock exchanges last month. The investigation into Alibaba is one of the first to scrutinise a Chinese tech giant, which until recently have been allowed to grow relatively unhindered by the country’s communist authorities. However, the blocking of the Ant Group IPO and the Alibaba probe suggests a sea change is taking place, indicating that the Chinese government may be concerned about the growing size and power. Ma himself may have placed his empire in Beijing’s crosshairs following a speech in October in which he criticised China’s regulators and its state-owned banking system, following new antitrust laws that have emerged denting Alibaba’s value. Shares in Alibaba fell 8.1% to HK$228 during Thursday trading on the Hong Kong Stock Exchange.