Alibaba shares fall after reports of anti-monopoly probe by China

Alibaba Group signage is seen during the company’s 11.11 Singles’ Day global shopping festival at their headquarters in Hangzhou, Zhejiang province, China, November 11, 2020.

Aly Song | Reuters

BEIJING — Shares of Alibaba fell in Hong Kong and extended-hours U.S. trading as reports surfaced that the Chinese government is conducting an anti-monopoly probe into the tech giant.

China’s State Administration for Market Regulation said through official online channels Thursday it has opened an investigation into Alibaba over monopolistic practices. The primary issue named was a practice that forces merchants to choose one of two platforms, rather than being able to work with both.

The news comes on the heels of an increasing — and largely unexpected — push by Chinese authorities to rein in their biggest tech firms through regulatory action.

Alibaba confirmed the market regulator’s investigation, and said “business operations remain normal.”

Bloomberg first reported the news, which was announced by Chinese state news agency Xinhua.

Shares of Alibaba closed in Hong Kong by more than 8% on Thursday and were down by that amount in premarket trading in New York.

Regulators to meet with Jack Ma’s other company

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.



Source link

Random Posts

  • Employees want to come back to the office

    Parents work from home with their two sons due to the coronavirus outbreak in Paris in 2020. Xavier Laine | Getty Images News | Getty Images People have changed their minds about working from home since the coronavirus prompted office […]

  • A Quick Article On Experience

    The LG GD880 Mini is the handset that comes full of an infinite number of options similar to GPRS, Wi-Fi, 5 MP digital digital camera, media participant, doc viewer, A-GPS and so forth. Nokia 6710 Navigator is trendy and engaging […]

  • Computer And Technology Right now

    Welcome to Gadgets 360’s mobile phone finder. But the most obvious improvement is by far the new screen. The “Retina” is a 3.5 inch show which looks absolutely superb, mainly because its pixels are solely 78 micrometers wide. It has […]

  • Microsoft’s GitHub has become magnet for thorny issues like RIAA

    In 2018, Microsoft made one of its priciest acquisitions ever, spending $7.5 billion on code-sharing site GitHub. It wasn’t the cleanest fit. GitHub is used by over 50 million developers who tend to be outspoken, including when it comes to […]