Alibaba said it is examining its business in response to an antitrust investigation. – The New York Times

The Chinese e-commerce titan Alibaba said on Tuesday that it was conducting internal reviews of its business in response to an antitrust investigation by the Chinese government, which in recent months has begun scrutinizing the countrys big internet companies like never before.

For many years, the growth of giants like Alibaba was celebrated in China as the fruit of a thriving private sector. Now, regulators in Beijing are more concerned about how the companies size and influence are affecting the interests of their customers and competitors, echoing the scrutiny that Western tech giants like Google face in the United States and Europe.

We approach this antimonopoly investigation with a cooperative, receptive and open mind set, Alibabas chief executive, Daniel Zhang, said on a conference call announcing the companys latest financial results. We have a deep appreciation of the significant social and public responsibilities of operating our platform. Beyond complying with regulatory requirements, we will continue to do our best to fulfill our responsibilities to society.

Mr. Zhang said Alibaba would say more when the investigation was complete. He gave no indication when that might be.

Chinas market watchdog announced the inquiry in late December, amid a series of actions by the authorities to rein in tech giants. The month before, officials had abruptly halted plans by Ant Group, Alibabas financial-technology affiliate, to go public in Shanghai and Hong Kong, citing the need for new supervision of internet finance. Regulators later ordered Ant to revamp its business, a process that Mr. Zhang said was still ongoing.

Ants business prospects and fund-raising plans remain subject to substantial uncertainties, Mr. Zhang said.

Like other tech giants such as Amazon, Alibaba has enjoyed strong growth during the pandemic, as lockdowns lead people to depend more on digital services.

Chinas resilient economy helped drive a 37 percent increase in Alibabas sales in the latest quarter, the company also said on Tuesday. Profits for the quarter were $12.2 billion and revenue was $33.9 billion, beating analysts forecasts. Cloud computing revenue grew 50 percent from a year ago, to $2.5 billion. Alibaba said that part of its business was profitable for the first time in the December quarter.

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Alibaba said it is examining its business in response to an antitrust investigation. - The New York Times

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