Wednesday, January 28, 2015

Chinese regulators: Alibaba fails to block fake goods, faces 'credibility crisis'

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BEIJING — There's a tiger fight going on in China.


Regulators on Wednesday issued a scathing report against one of the country's biggest stars, accusing e-commerce giant Alibaba of failing to do enough to prevent fake goods from being sold on its websites


Uncowed, Alibaba fired back with charges of bias and misconduct by a named Chinese official. The company is set to file a formal complaint against the director of the federal agency that criticized its business practices, according to Forbes .



Such public defiance is almost unheard of in China. Even more dubious is the timing of the sternly worded report. The State Administration of Industry and Commerce wrote the report in July after meeting with Alibaba management, but postponed issuing it to avoid affecting the company's New York stock market listing. Alibaba disclosed the issue of counterfeit goods as a risk factor in its prospectus — but didn't reveal any investigation by regulators before raising $25 billion in its September IPO. Read more...


More about China, Alibaba, and Business



from MashableThe Associated Press
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