Alibaba's headquarters in Hangzhou, East China's Zhejiang Province Photo: cnsphoto

Chinese tech firm Alibaba Group has completed a three-year rectification under the supervision and guidance of the State Administration for Market Regulation (SAMR), according to a statement on the top market regulator's website on Friday. Industry observers said the move marked a phased development of Chinese platform businesses. 

As one of China's largest internet firms, Alibaba's completion of the rectification process shows that the industry as a whole is "returning to the right track" of compliant development under guidance and regulation, a departure from the previous rampant model of expansion that created disorder and heightened risks.

Also, it sends a resounding signal on Chinese authorities' great emphasis on boosting the platform economy and encouraging attitude to drive its innovative and healthy growth - on the basis of a balance between supervision and development, analysts said.  

In April 2021, SAMR imposed an administrative penalty on Alibaba for the monopolistic practice of "forcing merchants to choose one of two platforms." Alibaba was ordered to cease its illegal activities, conduct a comprehensive self-examination and rectification, and submit a self-examination compliance report to SAMR for three consecutive years. 

SAMR added that the company's rectification efforts have achieved positive results.

Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Friday that the move demonstrates the Chinese government's unwavering support for and encouraging attitude on boosting platform businesses, which will greatly rally and reinforce market confidence. 

"The end of the rectification also means that the company is now in compliance with regulations, and is thus conducive to creating a better, fairer and market competitive environment," Wang said. He also called for relevant platform enterprises to play a bigger role in China's economic upgrade.