Alibaba completes regulatory overhaul after antitrust fine in China

Alibaba has successfully completed a three-year regulatory overhaul mandated by China's State Administration for Market Regulation (SAMR) following an antitrust fine imposed in 2021. The fine, amounting to 18.23 billion yuan ($2.6 billion), was a result of monopolistic practices, particularly the 'choose one' policy that restricted merchants to select only one e-commerce platform. This policy was deemed to give Alibaba an unfair competitive edge in the market. During the rectification process, SAMR closely monitored Alibaba's compliance with antitrust regulations. The regulator announced that the company has ceased its monopolistic behaviors and achieved satisfactory results in its efforts to align with regulatory requirements. This marks a significant step for Alibaba as it moves past one of its most challenging regulatory encounters with the Chinese government. The conclusion of this regulatory scrutiny is seen as a positive development for Alibaba, signaling a potential shift in the Chinese government's approach towards private technology firms. Analysts from Jefferies noted that this could represent a new beginning for the company, emphasizing the importance of compliance in its operations moving forward. Despite the regulatory challenges, Alibaba has shown signs of recovery, particularly in its cloud computing revenue and e-commerce transactions. However, the company continues to face challenges such as slow growth and increased competition in the Chinese e-commerce market, alongside a cautious consumer base. The completion of the regulatory overhaul may help alleviate some of the pressures on Alibaba's stock, which has seen a significant decline since its peak in 2020.