Alibaba says does not expect material impact from antitrust fine
Shares in Alibaba Group Holdings Ltd rose as much as 9% in Hong Kong trade
SHANGHAI (Reuters) -China’s Alibaba does not expect any material impact from changes to its exclusivity arrangements with merchants, CEO Daniel Zhang said on Monday, after regulators fined the e-commerce giant a record $2.75 billion for abusing its market dominance.
Shares in Alibaba Group Holdings Ltd rose as much as 9% in Hong Kong trade as a key source of uncertainty for the company was removed, and on relief the fine and steps ordered were not more onerous.
Alibaba has come under intense scrutiny since billionaire founder Jack Ma’s public criticism of the Chinese regulatory system in October.
The company will introduce measures to lower entry barriers and business costs faced by merchants on its platforms, Zhang told an online conference for media and analysts.
Alibaba executives said despite Saturday’s record 18 billion yuan ($2.75 billion) fine and measures ordered by regulators, they remain confident in the government’s overall support of the company.
“They are affirming our business model,” said Alibaba executive vice chairman Joe Tsai. “We feel comfortable that there’s nothing wrong with our fundamental business model as a platform company.”
