Alibaba was suspected of violating antitrust laws. Regulators are
exploring the company's "forced exclusivity" policy, particularly
Alibaba's requirement for partners not to work with its competitors.
On
the 24th of December 2020, The South China Morning Post published an
article stating that the State Administration for Market Regulation
(SAMR) of China has announced an investigation into Alibaba. According
to the publication, Alibaba was suspected of "behaviour aimed at
creating a monopoly," particularly a "forced exclusivity" policy. SAMR
is also examining the company's "choose one of the two" policy that
requires business partners not to work with its competitors.
Simultaneously,
the People's Bank of China announced that representatives of financial
regulators would meet with Alibaba's subsidiary Ant Group
representatives.
In early November, the company was supposed to
go public in Hong Kong and Shanghai. It would have been the largest IPO
in history, with the company expected to rise to $ 34.4 billion.
However, two days before the scheduled start of trading, the company's
IPO was halted. The PRC regulators have advised Ant Group that it may
not meet listing or disclosure requirements. The Ant Group report also
stated that the IPO had been suspended due to "material issues" that
emerged following a conversation between regulators and top company
executives.
Before the IPO, the founder of Alibaba criticized the
international rules for the operation of financial institutions. He
stated that they hinder innovation.