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THE $2.8 BILLION (R41bn) antitrust fine slapped on global e-retailer Alibaba for abusing its market dominance had little impact on the markets yesterday, with experts saying that the conclusion of the antitrust investigation had cleared the spectre of uncertainty facing the internet giant.

A senior analyst at ActivTrades, Ricard Evangelista, said yesterday that while the fine represented a large sum at $2.8bn, it ended up being smaller than many expected, representing 4 percent of the firm’s 2019 revenue, considerably less than the 10 percent set by regulations of such violations.

Evangelista said that on the other hand, closing the chapter was seen as positive for Alibaba, clearing the spectre of uncertainty.

“For these reasons the markets reacted positively, with shares gaining more than 6 percent after opening yesterday. Looking ahead, the outlook of the firm improved with the conclusion of the antitrust investigation, which may be the first step in the normalisation of the relationship with Beijing authorities,” said Evengalista.

On Saturday the State Administration for Market Regulation of the People’s Republic of China imposed the $2.8bn penalty. According to reports, the Administration for Market Regulation said that this practice stifles competition in China’s online retail market and “infringes on the businesses of merchants on the platforms and the legitimate rights and interests of consumers.”

Alibaba said in a statement that it accepted the penalty with sincerity and would ensure its compliance with determination.

Said Evengalista: “Therefore, I would say this fine, which ended up being on the lower side of the potential range and as it marks the end of uncertainty, is good news for investors.”