Google and Alibaba’s Different Stock Performances after Antitrust Investigations, the Reasons and Enlightenment

Authors

  • Cong Gu School of Economics and Management, University of Chinese Academy of Sciences, China.
  • Benfu Lv School of Economics and Management, University of Chinese Academy of Sciences, China.
  • Geng Peng School of Economics and Management, University of Chinese Academy of Sciences, China

DOI:

https://doi.org/10.32479/ijefi.12763

Abstract

Platform monopoly has attracted wide attention from politicians and the public.. The European Commission has made unremitting efforts in platform antitrust enforcement in the last decade, but together with antitrust investigations, the stock prices of platform giants like Google and Facebook keep breaking their highest points. At the end of 2020, the Chinese government also started antitrust investigations towards platform companies like Alibaba. In contrast, the stock price of Alibaba crashed and lost more than half of its market value. By analyzing their CAR, we proved that the stock performance of Alibaba is significantly worse than Google after their most serious antitrust investigations. The difference reflects investors' different expectations of the European Commission and China's antitrust enforcement. A noteworthy problem then comes out: while the Chinese government is seriously strengthening platform antitrust and putting forward reforms in platform regulation, is there any authority that is able to effectively regulate the international platform giants and maximize the welfare of their users worldwide?

Keywords:

Platform, Antitrust, Google, Alibaba

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Author Biographies

Benfu Lv, School of Economics and Management, University of Chinese Academy of Sciences, China.

School of Economics and Management, University of Chinese Academy of Sciences, Beijing, China Key Laboratory of Big Data Mining and Knowledge Management, Chinese Academy of Sciences, Beijing, China Expert group of Anti-monopoly Commission of The State Council, Beijing, China

Geng Peng, School of Economics and Management, University of Chinese Academy of Sciences, China

School of Economics and Management, University of Chinese Academy of Sciences, Beijing, ChinaKey Laboratory of Big Data Mining and Knowledge Management, Chinese Academy of Sciences, Beijing, China

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Published

2022-03-14

How to Cite

Gu, C., Lv, B., & Peng, G. (2022). Google and Alibaba’s Different Stock Performances after Antitrust Investigations, the Reasons and Enlightenment. International Journal of Economics and Financial Issues, 12(2), 26–36. https://doi.org/10.32479/ijefi.12763

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Section

Articles