:max_bytes(150000):strip_icc()/GettyImages-2168033581-4ea59dfc3ea847519af2aefe95aba5d7.jpg "Alibaba Gains after Chinese Regulators Complete 3-Year Antitrust Probe")
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Key Takeaways
- Chinese regulators said they had completed a three-year “rectification” of Alibaba.
- The e-commerce giant was fined in 2021 and took steps to address concerns about monopolistic practices.
- Jefferies analysts said the conclusion of the “rectification” process could represent a “new start” for the company and maintained a “buy” rating.
Alibaba Group (BABA) shares traded in the U.S. gained Friday after Chinese regulators said the e-commerce giant completed a three-year “rectification” over charges it engaged in monopolistic practices.
China’s State Administration for Market Regulation (SAMR) said Alibaba made several changes to comply with the government’s requirements, including eliminating some practices discouraging Alibaba merchants from working with other e-commerce platforms.
In 2021, SAMR fined Alibaba 18.23 billion Chinese yuan ($2.57 billion) for abusing its market influence, and set the “rectification” period. At the time, Alibaba CEO Daniel Zhang said “we accept the penalty with sincerity and will ensure our compliance with determination.”
Jefferies analysts said the conclusion of the process could represent a “new start” for the company and maintained a “buy” rating.
Alibaba shares were up 2.3% at $82.95 in Friday morning trading, and have gained about 7% since the start of the year.
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