The share price of China-based e-commerce giant Alibaba Group Holding Limited (HK:9988) declined by 1.19% as its rival JD.com, Inc. (HK:9618) won the anti-monopoly case against the company. Last week, JD.com announced its victory in the case against Alibaba, along with a fine of 1 billion yuan ($141 million). Nevertheless, JD.com’s shares traded down by 2.4% today amid weakness in the broader market.
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The case was initially filed in 2017 by JD.com to counter Alibaba’s “choosing one between the two” monopolistic practices, which compel merchants to enter exclusive agreements with a single online retailer.
Alibaba’s stock has traded down by almost 16% in 2023.
More on the Lawsuit
According to a statement released by JD.com, the High People’s Court of Beijing ruled that Alibaba engaged in “monopolistic practices and abused market dominance.” This severely impacted the performance of JD.com. The court also found Alibaba’s subsidiaries, Zhejiang Tmall Network Co. and Zhejiang Tmall Technology Co., guilty.
A formal investigation in this case was started against Alibaba in December 2020.
The statement further emphasized that the case marks a significant milestone in promoting market fairness and maintaining competitive order through adherence to the rule of law. This decision is also expected to play a pivotal role in shaping China’s anti-monopoly legal framework.
Is Alibaba Stock a Buy Now?
On TipRanks, 9988 stock has received a Strong Buy consensus rating based on seven Buys and one Hold recommendation. The Alibaba share price target is HK$126.30, which shows a growth rate of 67% on the current trading price.
