He said Alibaba CEO today, Monday: He does not expect any material impact from the antitrust campaign in China, which is pushing it to reform the way it deals with merchants.
The statement comes after regulators imposed a $ 2.75 billion fine on the e-commerce giant for abusing market dominance.
Alibaba has come under intense scrutiny since its billionaire founder publicly criticized the Chinese regulatory system in October.
CEO Daniel Zhang said: As part of the sweeping adjustments that regulators are seeking, Alibaba is making it easier for merchants to deal with.
Beijing wants Alibaba to stop requiring merchants to choose between doing business with it or with competing platforms, a practice that critics say has helped it become the largest e-commerce operator in China.
Alibaba executives said that despite the record fine of 18 billion yuan ($ 2.75 billion) and actions ordered by regulators, they remain confident of the government’s overall support for the company.
Alibaba Executive Vice President said: They confirm our business model, and we feel comfortable that there is nothing wrong with our core business model as a platform company.
The company’s shares rose about 8 percent in afternoon trade in Hong Kong, adding $ 48.5 billion to its market value and setting it on course for the largest gains in one day in nearly three months.
Aside from imposing the fine, which is among the highest antitrust penalties in the world, SAMR ordered Alibaba to make comprehensive corrections to enhance internal compliance and protect consumer rights.
The required corrective actions are likely to limit Alibaba’s revenue growth as further expansion of its market share is restricted.
SAMR said: It has identified that Alibaba has banned its merchants from using other online e-commerce platforms since 2015.
The regulator said: This practice, previously described by SAMR as illegal, violates China’s antitrust law by impeding the free circulation of goods and infringing on the commercial interests of traders.
Ali Baba said: She accepted the punishment and guarantees her commitment firmly, andOther than the review of a company’s mergers and acquisitions, which company peers also face, it does not expect further investigation from the antitrust regulator.
“Alibaba does not rely on exclusivity to retain its dealers,” she added, adding that such exclusive arrangements in the past have only covered a small number of Tmall’s flagship stores.
The fine is more than double the $ 975 million that Qualcomm in China paid in 2015 for anti-competitive practices.
Analysts said: The $ 2.75 billion fine against Alibaba should be seen for what it is, as it represents a reasonable price that could be paid to initiate the reconciliation process with the Beijing regime.
They added: Alibaba remains an attractive and convenient way to invest in the fast-growing Chinese economy, and given the strength of its diversified underlying business, the stock is undervalued by most traditional measures.