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

Cong Gu, Benfu Lv and Geng Peng
Additional contact information
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

International Journal of Economics and Financial Issues, 2022, vol. 12, issue 2, 26-36

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 (search for similar items in EconPapers)
JEL-codes: F32 L16 L44 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/12763/6649 (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/12763 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2022-02-3

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().