Alibaba squeezed by crackdown as JD.com and Pinduoduo pounce

Regulatory scrutiny and scandals put e-commerce leader on the ropes

20210826N JD.com

JD.com's e-commerce business has boomed, though rising costs in its logistics business dragged down overall earnings. © Reuters

NAOKI MATSUDA, Nikkei staff writer

SHANGHAI -- China's crackdown on Big Tech has shifted the balance in the country's e-commerce market, with JD.com and Pinduoduo continuing to thrive while industry leader Alibaba Group Holding bears the brunt of the damage, earnings releases show.

While all three companies face the same regulatory environment, Alibaba has come under particularly heavy pressure over its business practices -- to the direct benefit of its rivals, especially JD.

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