- Ant Group charged with anti-trust Behaviour.
- Alibaba’s founder Jack Ma is head of Ant Group.
- The Public’s Bank of China ordered Ant Group to make corrections.
Chinese regulators have demanded Ant Group’s Jack Ma to fix his business model by complying with the regulatory requirements of the nation. They also requested the company to continue as a payment service provider. The way it had begun, threatening to slow down growth in its consumer loans and asset management companies.
Alibaba’s Ant Group in Trouble
The Order comes amid strengthened monitoring of anti-monopoly activities in the internet sector of the country. On Saturday, Ant executives were called by the People’s Bank, the country’s central bank. That ordered them to develop a correction plan and a timetable for the implementation of its business. Including its services of credit, insurance, and wealth management.
Official Statement from Central Bank
In a statement released on Sunday by the central bank, Ant Group said it lacked a sound system of governance, defied regulatory enforcement requirements, and engaged in regulatory arbitrage.
The company used its dominant market position to exclude competition and damage customers’ rights and interests. Regulators ordered the formation of a financial holding company by Ant Group and the holding of enough capital.
The bank also suggested that ‘Ant Group’ should return to the source of its payments. In addition to that, the group has to increase transaction transparency and prohibit unfair competition. The organization will strengthen corporate governance and ensure that it meets the regulatory standards for its entities.
Official Statement from Ant Group
In a statement on Sunday, the Ant Group confirmed that it would comply with regulatory requirements. The company promised to strengthen risk management and that it would set up a working group to make the required corrections. The Ant Group understands the advice of financial regulators and accepts the message.
The Ant company began as a payment service for Alibaba’s Taobao e-commerce site. Ever since it has sold insurance and investment products to millions of mainland China users. Regulators’ orders could restrict the expansion of Ant Group and threaten its valuable finance companies.
