China has launched an antitrust investigation into Alibaba Group and will summon the Ant Group affiliate to meet. The probe is part of a crackdown on monopolistic behaviour in the country’s booming internet industry, and the latest setback for Ma, China’s most famous entrepreneur. Last month, China suspended Ant’s planned $37 bn IPO, which was on the track to become the world’s largest, just two days before the official launch in Shanghai and Hong Kong.
China’s Ant Group is considering selling its 30% stake, worth around $ 4.8bn, in Paytm amid tensions between the two Asian neighbours, said news agency Reuters. Financial details of the possible transaction were not known and the Alibaba-backed firm is yet to launch a formal sale process. Paytm was valued at about $16 bn during its latest fundraising a year ago. Both Ant and Paytm said that the information was incorrect.
Alibaba Cloud remained the number one player in the China Cloud services market in Q3 with a 41% market share. The China Cloud infrastructure spend grew 65% in Q3 2020 to exceed $5 bn for the first time, said research firm Canalys. Total expenditure was over $750 mn higher than in the Q2 and nearly $2 bn more than in Q3 2019. Huawei Cloud (16%), Tencent Cloud (16%) and Baidu AI Cloud (7%) were the other top players in the segment.
Indian banned another 43 Chinese mobile apps including Alibaba Group’s Aliexpress, DingTalk, AliPay, Taobao Live amidst months-long standoff at a Himalayan border site. The 43, including a range of dating apps, threaten the “sovereignty and integrity of India”, the IT ministry said in a statement. India has previously banned over 170 apps, including popular short video app TikTok, alleging that they collect and share users data which could pose a threat to the nation.
The Tata Group is in talks to tie up with online groceries unicorn BigBasket, Financial Times has reported. A decision would be taken on the deal by the end of October. The coffee-to-cars conglomerate could be eyeing a 20 per cent stake and two board seats in the potential deal, the report further stated. Backed by Alibaba, BigBasket gained traction on the back of the ongoing Covid-19 pandemic as consumers purchase groceries and everyday essentials online.
Alibaba Group, as per a Reuters report, has put on hold on plans to invest in Indian companies following the rise of geopolitical tension between India and China. The Chinese internet giant will not put funds in any new Indian start-ups or companies for at least six months, said the report. The company, however, has no plans to exit or reduce its investments of over $2 bn in Indian firms. Alibaba’s investee companies include Paytm, Zomato, and BigBasket.
Days after signing an executive order to ban ByteDance-owned TikTok, the US President Donald Trump now indicates his plan to ban other Chinese firms including e-commerce giant Alibaba. Earlier, the executive order demanded ByteDance divest its interests in TikTok’s US operations within 45-days deadline, until September 15th. This deadline, as per the new order, signed on August 14, has been extended by 90 days, until November 12th.
Alibaba Cloud announced its plan to invest $283 M to empower global partners and accelerate joint innovations in the post-pandemic era. This investment will enable the firm to work collaboratively with its 10,000 global partners to innovate and develop up-to-date services for its customer base. Enhancing its partner Go-To-Market incentives for boosting customers’ digital transformation is also a part of the plan.