Alibaba Group Holdings Ltd. (NYSE: BABA) According to a report by Chinese state-run media Caixin Global, the number of vendors who signed up for the online shopping festival “6.18” in mid-year has doubled year-on-year.
What happened: The annual mid-year shopping event is a huge draw for Alibaba and its rivals JD.com Inc. (NASDAQ: JD) as it adds billions in revenue backed by huge discounts and offers.
According to the report, Tmall, Alibaba’s business-to-consumer online retail platform, saw an influx of 250,000 brands this year, aided by lower barriers to entry.
The annual online sales festival begins May 24th and runs through June 20th for Alibaba and JD.com.
See also: How to Buy Alibaba Stock
Why it matters: Alibaba had told Tmall vendors in January that they would not support the “Pick One from Two” practice this year – a strategy aimed at forcing vendors to choose either their services or those of their competitors so the report.
China’s antitrust authorities have banned practices that are considered anti-competitive. These include vendors who abuse their strong market positions, burn cash, violate user privacy policies, and ignore counterfeit products. according to the message.
Despite a record $ 2.8 billion fine on Alibaba in China after a monopoly investigation found the company abused its dominant position, the problems facing the country’s most famous billionaire seem far from over.
Price action: Alibaba shares closed 2.73% on Friday at $ 211.06.
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