BEIJING (CHINA) – Chinese regulators said on Thursday that a probe will be initiated into Alibaba Group’s suspected monopolistic behaviour and would summon its Ant Group to meet in coming days. This comes as the latest blow for the fintech empire of Jack Ma.
This comes after Beijing suspended last month Ant Group’s planned $37 billion initial public offering two days before it was due to initiate trading in Shanghai as well as Hong Kong.
In early Hong Kong trade, shares in Alibaba slumped 6%.
Alibaba was previously warned by regulators about the so-called “choosing one from two” practice which mandates merchants to sign exclusive pacts barring them from offering products on rival platforms.
The State Administration for Market Regulation (SAMR) issued a statement saying it had launched an investigation into the alleged practice.
In the coming days, regulators will also meet with Ant Group fintech affiliate, as per the statement issued by the People’s Bank of China on Thursday.
It said the meeting is aimed at “guiding Ant Group to implement financial supervision, fair competition and protect the legitimate rights and interests of consumers.”
The group acknowledged that it had received a notice from regulators, adding that it would “comply with all regulatory requirements”.