Alibaba does not expect any material impact from changes to its exclusivity arrangements with merchants, CEO Daniel Zhang said, after regulators fined the e-commerce giant for abusing its market dominance.
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 (roughly Rs.20,640 crores) for abusing its market dominance. Shares in Alibaba Group rose as much as 9 percent 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 CNY 18 billion (roughly Rs.20,630 crores) 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. » Shares bounce Markets reacted positively, with shares jumping by the most since July last year.
