Will Alibaba's $2.75 Billion Fine Help or Harm Investors?
China's antitrust regulators recently levied a record 18 billion yuan ($2.75 billion) fine against Alibaba (NYSE: BABA), claiming the company had abused its market dominance since 2015 by prohibiting its brand-name merchants from listing their products on competing platforms.
That sounds like bad news for Alibaba, but its stock rallied after investors digested the news. The bulls likely assume the fine indicates the worst is over for Alibaba, which has been targeted by antitrust regulators in a broad crackdown on China's top tech companies over the past several months.
However, the bears will note that Alibaba's fintech affiliate, Ant Group, still faces regulatory pressure in a separate case. Alibaba could still be pressured to divest some of its media assets, invest in fewer companies, and distance itself from its outspoken co-founder Jack Ma.
Source Fool.com
