China has launched an investigation into the Alibaba group. The country's regulatory body said on Thursday that it was investigating the policy of monopolizing business.
Earlier, the e-commerce giant was warned about the so-called "choose one of two" practice. Under the offer, merchants had to sign a contract that prevented them from delivering goods on a competing platform.
The country's State Administration for Market Regulation (SAMR) said in an online statement that a thorough investigation had been launched into the matter.
Meanwhile, the People's Bank of China said that the financial regulator will also attack Alibaba's Ant Group in the future to investigate.
The online statement said Ant Group would be given guidance on financial oversight, implementation of fair competition and protection of the legitimate rights and interests of consumers.
Acknowledging receipt of the notice from the regulatory body, Ant Group said it was taking the matter seriously and would make every effort to strictly comply with all regulations of the regulatory body.
Originally, about 40 percent of Ant's total revenue in the first half of the year came from the lucrative loan business. And through this, Gruti's empire suddenly blossomed and made the regulatory body uneasy.
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