China has launched an anti-monopoly investigation into Alibaba, regulators said on Thursday, sending the share price of the e-commerce giant tumbling and intensifying the troubles of its billionaire founder Jack Ma.
Regulators will also hold “supervisory and guidance” talks with Alibaba’s gigantic financial services subsidiary Ant Group, state media reported, just weeks after its record-breaking IPO was halted at the last minute by Beijing.
The continued squeeze on one of China’s most influential companies is the latest sign that the Communist leadership is ready to deflate the ambitions of big tech firms in a runaway internet sector, which has made Ma one of China’s richest people with an estimated $58 billion (€48bn) fortune.
Investigators are probing Alibaba for “suspected monopolistic practices”, the State Administration for Market Regulation said in a statement.
The probe threatens to impede the growth of Alibaba, a tech juggernaut which revolutionised the e-commerce landscape of China.
Alibaba shares tumbled 8.6 per cent to a five-month low in Hong Kong on the news.
In a statement, the company said it “will actively cooperate with the regulators on the...
