New Delhi: Jack Ma’s Alibaba Group, which was under the regulatory scanner for alleged monopolistic practices, has decided to shut down its music streaming platform Xiami Music, holding back its agenda to enter China’s entertainment industry. The music streaming platform will shut from next month.Also Read - After Months of Lying Low, Alibaba Founder Jack Ma Spotted Playing Golf in Eastern China
“Due to operational adjustments, we will stop the service of Xiami Music from February 5,” Alibaba’s music arm announced on Tuesday on its Weibo account, as quoted by LiveMint. The online music app started in 2013 and invested millions to compete in China’s online music industry. Also Read - After Jack Ma Reappears in Public, Alibaba Stock Goes Up by 8%
In December last year, Jack Ma’s Ant Group announced that it was planning to fold its financial operations into a holding company after the country laid out a “rectification plan” for Ma’s fintech venture. Also Read - 'Dekho Wo Aa Gaya': Memes Flood Twitter After Jack Ma Reappears in Public After Months
Xinhua news agency had first reported that The People’s Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, and State Administration of Foreign Exchange will “interview Ant Group in the near future”.
The report also said, “The move might cripple the growth of the fintech giant’s most profitable units”.
Alibaba Group is the world’s biggest e-commerce company by total sales volume.
However, over the past few months, Alibaba and its rivals like Tencent Holdings Ltd have been facing increased scrutiny from regulators for capturing almost all aspects of the everyday lives of the Chinese people.
Although the government officials have not laid down a clampdown against such firms, anti-monopoly rules in China are now threatening to upset the status quo by stepping up official efforts and imposing scenarios like fines to a break-up of industry leaders and implement “fair competition”.