Alibaba experiences a 4% increase in premarket value following the completion of a three-year regulatory transformation.

• China's market regulator announced on Friday that Alibaba had completed a three-year regulatory "rectification" process following an antitrust fine it received for monopolistic practices in 2021.
• The State Administration for Market Regulation (SAMR) in China has been monitoring Alibaba's efforts to adhere to antitrust regulations.
• The SAMR stated that Alibaba has ended its "choose one of two" monopoly behavior.

China's market regulator announced on Friday that Alibaba had completed a three-year regulatory "rectification" process following an antitrust fine it received on charges of monopolistic practices in 2021.

In premarket trading in the U.S., Alibaba's shares increased by 4.37% at 07:24 a.m.

Alibaba has been undergoing antitrust regulation compliance supervision by China's State Administration for Market Regulation (SAMR) for several years. The SAMR stated that the rectification process has yielded positive outcomes.

In 2021, Alibaba was fined 18.23 billion yuan ($2.6 billion) by China's SAMR as part of an anti-monopoly investigation into the tech giant's practice of forcing merchants to choose one of two e-commerce platforms.

The "choose one" policy and other regulations enabled Alibaba to strengthen its market position and gain an unfair competitive edge.

The SAMR has been monitoring Alibaba as it adheres to the regulator's guidelines. Alibaba has now completed this process and has stopped engaging in the "choose one of two" monopoly behavior, as stated by the SAMR on Friday.

The SAMR has announced that it will assist Alibaba in enhancing its compliance, efficiency, and innovation.

The conclusion of the regulatory overhaul will help Alibaba put one of its worst run-ins with Beijing behind it, according to Jefferies analysts. They said in a note on Friday that the conclusion of the regulatory process was a "positive" for the company, which "highlights this is a new start and ensures compliance in operations."

The regulator's announcement could indicate a shift in Chinese regulators' stance towards private technology firms, following a strict crackdown that started in late 2020. At that time, Beijing implemented several regulations and actions aimed at limiting the influence of domestic technology companies in various sectors, including antitrust and gaming.

Since the IPO of Ant Group was axed by regulators in 2020, the empire of Alibaba founder Jack Ma has been under scrutiny. The financial technology firm underwent a regulator-supervised rectification process, with most of the major issues resolved by last year.

The decline in Alibaba's stock price, which has fallen more than 70% from its peak in 2020, has been attributed to regulatory concerns, slow growth in the e-commerce industry in China, and a cautious Chinese consumer.

In the June quarter, the tech titan exhibited early signs of recovery, with cloud computing revenue accelerating and e-commerce transactions appearing healthy.

- CNBC's Christine Wang contributed to this report.