According to the state agency Xinhua, the Chinese government will put a magnifying glass on Alibaba's alleged monopoly practices.
Alibaba, the e-commerce giant, will be investigated by Chinese authorities for alleged monopolistic practices.
The announcement caused a drop in the company's shares on the Hong Kong Stock Exchange, down 7.33%, according to EFE.
The state news agency Xinhua, quoted by EFE, explained that the "monopolistic conduct" would also include exclusive business agreements. The example is that, according to the government, Alibaba tried to force wholesalers to choose a single platform between two competitors.
The body in charge of the investigation is the State Administration for Market Regulation of China.
Other regulatory institutions in the country, including the Central Bank of China, announced that they will talk with the technological finance company Ant Group, which is a subsidiary of Alibaba.
Alibaba was founded in 1999 by Chinese businessman Jack Ma. The private consortium owns 18 Hangzhou-based subsidiaries for Internet e-commerce.
Its current directors are Daniel Zhang and Jonathan Lu.
This month, Alibaba has already received a fine from the Chinese authorities
The company was fined on December 14 for not complying with antitrust procedures in the acquisition of other companies. He had to pay just over $ 76,000.
Tencent was also sanctioned by the Chinese authorities for the same reasons.
According to the Chinese government, Jack Ma's company did not submit some documents. These had to specify that the operations represented a concentration of market players.
Both Alibaba and the Ant group claimed to abide by government regulations, cooperating with the investigations.
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