Alibaba To Open Up Deals App On Tencent's WeChat Messaging Platform For Antitrust Immunity: Bloomberg

Chinese e-commerce giant Alibaba Group Holding Ltd BABA is planning to offer its bargains service on rival Tencent Holdings Ltd’s TCEHY WeChat messaging platform. The move comes following the regulatory crackdown by China’s watchdog on internet business monopolies, Bloomberg reports.

• Alibaba planned to set up a Taobao Deals lite app on Tencent’s WeChat and invited some merchants to participate in a landmark move. Selling through the WeChat super-app implied payment acceptance via the WeChat Pay service.
• Tencent is yet to accept the listing of the Taobao Deals lite app. The WeChat evolved from a chatting platform to ride-hailing, online shopping, and payments on its platform with over a billion users.
• China’s antitrust watchdog has prioritized internet companies’ regulation with a heightened focus on the tech majors to eliminate monopolistic behaviors from alliances that compelled smaller rivals to forced exclusive arrangements and predatory pricing.
• Alibaba and Tencent have been at loggerheads despite their respective focus on online shopping, social media, and gaming.
• Alibaba’s deals app targeted the consumption needs of China’s smaller cities and towns beyond its Taobao and Tmall shopping platforms to eliminate competitors like Pinduoduo Inc PDD. The mobile monthly average users of Taobao Deals exceeded 100 million in 2020. Local media 36Kr reported the addition of a Taobao Deals mini program in the WeChat for a brief time in February.
• Chinese antitrust regulators recently throttled Jack Ma Ant’s $35 billion initial public offerings (IPO) upon Ma’s regulatory criticisms, followed by a probe into Ma’s flagship e-commerce corporation.
• Tencent was fined for not seeking approval on past deals, with its fintech businesses being a potential target for regulatory scrutiny. 
• Price action: BABA shares traded higher by 2.92% at $233.55 on the last check Wednesday. TCEHY shares traded lower by 1.39% at $80.52.