And again, there’s negative news for Alibaba. Chinese competition regulators are now fining the online trading platform 2.3 billion euros (18 billion yuan). Alibaba had exploited its dominant position in the market to punish traders who wanted to offer their goods via competing platforms. This is how the Chinese authorities justified the recent sanctions.
Meanwhile, the company is coming under increasing pressure as such adverse reports have been piling up since November 2020. It could be circumstantial evidence that Alibaba is becoming too influential for the Chinese government. One could assume that the Chinese government would like to regulate the company more closely.
Economically, the penalty is not dangerous for Alibaba. In the last quarter, the Group generated a profit of the equivalent of ten billion euros.
Technically, Alibaba is currently very interesting (see chart).
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