Alibaba Shares Rise After Antitrust Approval

Shares in Alibaba (NYSE:BABA) climbed more than 4% in premarket trading on Friday after the Chinese e-commerce and technology giant received approval from the country’s antitrust regulator, three years after a significant investigation into its online practices.

The State Administration for Market Regulation announced that Alibaba has ended the monopolistic behaviors that led to the investigation. According to the agency, the company has ceased enforcing exclusive agreements with merchants, enhanced services for consumers, and promoted competition among online platforms.

This official approval arrives as Beijing increasingly voices support for private enterprises and the technology sector, a notable shift as the country recovers from the economic downturn following COVID-19.

Since 2023, government officials have signaled a more lenient approach towards the private sector, in contrast to the heavy regulatory actions of 2020 and 2021 that targeted the influence of China’s internet giants and their billionaire founders.

The antitrust regulator praised the “effective results” of Alibaba’s three-year rectification efforts, following a record $2.8 billion fine for market dominance abuse. The agency will continue to oversee Alibaba’s operations and assist in enhancing its compliance.

“This is a new beginning for Alibaba,” the company stated. “In the future, we will focus on innovation, adhere to compliance, increase investment in technology, and promote the healthy development of the platform economy, creating more value for society.”

The antitrust investigation into Alibaba began in 2020, part of a broader regulatory campaign that extended to sectors such as ride-hailing, online education, and e-commerce.