China's top antitrust authority launched an investigation into the food delivery industry, placing heightened regulatory scrutiny on Alibaba Group. The probe was announced on January 8 and reported by Caixin Global on January 10.
The investigation targets aggressive pricing strategies and excessive subsidies within the sector, where Alibaba operates as a major competitor. Alibaba stated it will comply with the assessment and work toward establishing a fair market environment.
This action aligns with a broader regulatory trend in Beijing. Regulators are increasing oversight of the 'platform economy' to curb destructive rivalry while simultaneously supporting 'hard tech' development.
Although Alibaba's stock saw a volatile recovery in early 2026, the new regulatory focus on food delivery could impact near-term margins and investor sentiment.