“Acting on information, China’s State Administration for Market Regulation [SAMR] has started investigation [into] Alibaba Group for alleged monopoly conduct including implementing an ‘exclusive dealing agreement’.” This brief note, posted by Xinhua, the state news agency, on December 24th, was all it took to cut China’s mightiest online titan down to size. Not even the announcement three days later of an additional $6bn in share buy-backs arrested the slide in its share price. By December 28th it had fallen by 13%, wiping $91bn off the firm’s market capitalisation. American regulators, whose detailed charge-sheets against tech giants such as Facebook and Google in recent weeks elicited a yawn from investors, must have looked on with envy.
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The Economist
