The Chinese market regulator has opened an investigation into “Alibaba’s alleged monopolistic behavior.” The State Administration for Market Regulation published a brief statement on its website announcing the anti-monopoly probe. The regulator appears to have challenged Alibaba’s “pick one out of two” policy, in particular. According to TechCrunch, this policy requires merchants to sell exclusively on Alibaba platforms and prevents them from selling on competing e-commerce sites, such as JD.com and Pinduoduo.
This is just one of the latest steps the regulator has taken to tackle anti-competitive behavior by local tech companies. In November, he introduced new bills that would restrict companies’ data collection activities, along with other rules supposed to protect consumers. China Morning Post Also reports that the regulator summoned Alibaba, JD.com, Tencent, Meituan, Pinduoduo and Didi Chuxing for a meeting on Tuesday to discuss a set of nine rules to follow. These technology giants will be “strictly prohibited from selling products at prices below their cost in order to drive away competitors or seek monopoly positions,” the regulator reportedly said.