Alibaba Shares Plummet on Chinese Anti-monopoly Probe

Shares of Alibaba were falling after reports revealed that the company is having an anti-monopoly probe done by the Chinese government.

China’s State Administration for Market Regulation said through official online channels on Thursday that it has opened an investigation into the company over monopolistic practices.

The primary issue identified was a practice that forces merchants to choose one of two platforms, rather than being able to work with both.

While the company has confirmed that there is an investigation by market regulators, their “business operations remain normal.”

Chinese authorities said that they would meet with Alibaba-affiliate Ant to supervise the financial technology company on issues such as operating in a market-oriented way and with consideration for consumers’ rights and interests.

According to the People’s Bank of China, the other participating regulators are the China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, and State Administration of Foreign Exchange.

Ant confirmed it received a notice Thursday from regulators for a meeting.

It was in November that regulators suddenly suspended the company’s massive initial public offering just days before the planned listing in Hong Kong and Shanghai.

Shares of Alibaba were down 8% in pre-market trading in New York on Thursday.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.