China’s antitrust authorities have launched an investigation against the Chinese Internet company Alibaba. As the authority announced, the country’s largest online retailer is being investigated for alleged monopoly offenses. There are also allegations that Alibaba is causing companies to only choose their own platform as an exclusive sales channel.

The investigations are for Alibaba another setback after the company had been increasingly targeted by the Chinese authorities in recent weeks. At the beginning of November, the planned record IPO of the Alibaba financial subsidiary Ant Group fell short after an intervention by Chinese supervisors. The Shanghai Stock Exchange had justified the move with the fact that the “regulatory environment” has changed significantly.

The IPO cancellation was accompanied by reports that Alibaba founder Jack Ma had angered the Chinese leadership. A speech by the second richest man in China is said to have not been well received. The Alibaba founder, who is otherwise always loyal to the Communist Party, had sharply criticized local and global regulatory authorities. Alibaba shares lost a significant 7.9 percent in Hong Kong trade by midday on Thursday.

(emw)