Alibaba Says No Material Impact from Antitrust Fine Expected, Stock Soars
China's Alibaba said it does not expect material impact from changes to its exclusivity arrangements with merchants, CEO Daniel Zhang said on Monday, following regulators’ record fine of $2.75 billion for abusing market dominance.
Alibaba has been under the strict eye of regulators ever since its billionaire founder - Jack Ma has invoked public criticism on 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 said, yet Alibaba executives remain confident in the government’s overall support of the company.
"They are affirming our business model. We feel comfortable that there's nothing wrong with our fundamental business model as a platform company“, Alibaba executive vice chairman - Joe Tsai commented.
Shares in Alibaba Group Holdings rose as much as 9% in Hong Kong trade on the news of the company not feeling the uncertainty many have feared.
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