Alibaba Group Holding Ltd has ceased the monopolistic practices that prompted an investigation more than three years ago, the nation’s top antitrust regulator said, in an encouraging signal to the country’s giant internet industry.

The Hangzhou-based e-commerce leader has stopped forcing exclusive arrangements on merchants, improved services for shoppers, and helped energize competition among online platforms, state broadcaster CCTV reported Friday, citing a statement from the State Administration for Market Regulation. Alibaba’s shares rose 4% in pre-market trading in New York.

Beijing’s market regulator launched a high-profile antitrust probe into Alibaba in 2020 as one of the opening salvos in a campaign seemingly designed to curb the power of China’s internet leaders and their billionaire founders. Less than a year later, authorities slapped a record US$2.8 billion fine on Alibaba after ruling that the company had abused its market dominance.

On Friday, SAMR said it has seen “effective results” in Alibaba’s three-year rectification work, according to the CCTV report. The regulator added it will guide Alibaba to continue to regulate its operations and improve compliance.

China’s once-freewheeling tech industry is emerging from the aftermath of the yearslong government crackdown, but it’s still facing significant challenges around flagging consumer spending.

  - Bloomberg