Alibaba Group Holdings Ltd BABA says the number of vendors that have signed up for the "6.18" mid-year online shopping festival has doubled from last year, according to a report by China state-affiliated media Caixin Global.
What Happened: The annual mid-year shopping event is a major draw for Alibaba and rival JD.com Inc JD as it adds billions in revenue helped by steep discounts and offers.
According to the report, Tmall, Alibaba’s business-to-consumer online retail platform, has seen an inflow of 250,000 brands this year helped by lower entry barriers.
The annual online sales festival will begin on May 24 and last through June 20 for both Alibaba and JD.com.
See also: How To Buy Alibaba Stock
Why It Matters: Alibaba had in January informed Tmall vendors it would not support the "pick one from two" practice this year — a strategy aimed at forcing vendors to choose either its services or those of its rivals — according to the report.
China’s antitrust regulators have banned such practices that are seen as anti-competitive and include vendors abusing their strong market positions, burning through cash, violating user data privacy rules, and turning a blind eye to fake products; according to the report.
Despite a record $2.8 billion fine slapped on Alibaba in China after a monopoly probe found that the company had abused its dominant market position, the country’s most famed billionaire’s troubles seem to be far from over.
Price Action: Alibaba shares closed 2.73% lower at $211.06 on Friday.
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