Business Maverick: Alibaba’s First Sales Miss in Two Years Shows Crackdown Toll

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Alibaba Group Holding Ltd.’s revenue missed estimates for the first time in more than two years, underscoring how Beijing’s months-long campaign against the internet sector is taking a toll.

Growth slowed in most of Alibaba’s major divisions from cloud to e-commerce, underlining fears that the mounting list of new government regulations is constraining expansion and increasing companies’ burdens. In a sign of the times, Chief Executive Officer Daniel Zhang on Tuesday endorsed a string of government policies enacted during a tumultuous 2021, from strict curbs on data collection to excessive subsidies.

Months after swallowing a $2.8 billion fine for violations such as forced exclusivity with merchants, Jack Ma’s flagship e-commerce firm is plowing money into areas like its bargains platform and community commerce to offset slowing growth, at a time when Pinduoduo Inc. and JD.com Inc. are eroding its dominance.

In the wake of the crackdown, Alibaba has made tentative steps to reach out to Tencent, applying to create a mini app for its Taobao Deals platform on Tencent’s WeChat service, Bloomberg News reported earlier this year. The Wall Street Journal also reported Alibaba is considering letting customers use WeChat Pay on Taobao and Tmall.

 

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