Arab Today, arab today china criticises alibaba in report withheld until after ipo
Last Updated : GMT 22:51:18
Arab Today, arab today
Arab Today, arab today

China criticises Alibaba in report withheld until after IPO

Arab Today, arab today

Arab Today, arab today China criticises Alibaba in report withheld until after IPO

Jack Ma, founder of e-commerce giant Alibaba
Beijing - AFP

Chinese regulators accused e-commerce giant Alibaba of permitting sales of fake goods and hurting consumers in a report that was withheld until now to avoid disrupting the company's U.S. stock market debut.
Alibaba, one of China's biggest private companies, responded Wednesday with a statement accusing the regulator of bias and misconduct in a rare break with the obedient public tone of Chinese businesses in dealings with authorities.
The sternly worded report by the State Administration of Industry and Commerce said Alibaba allowed unlicensed merchants to use its Taobao and Tmall platforms and failed to protect consumers' rights.
The report was the result of a meeting in July between regulators and Alibaba Group Ltd. management but the regulator said its release was postponed to avoid affecting progress toward the company's New York stock market listing. Alibaba went public in September after raising a record $25 billion in an initial public offering.
Alibaba accused the SAIC official in charge of Internet monitoring, Liu Hongliang, of unspecified "procedural misconduct." It said the company will file a formal complaint with the agency.
Such public defiance is almost unheard of in a Chinese system in which companies nearly always respond to official criticism by promising to reform.
"We welcome fair and just supervision, and oppose selective omissions and malicious actions," said the statement. "Obtaining a biased conclusion using the wrong methodology has inflicted irreparable and serious damage to Taobao and Chinese online businesses."
Alibaba did not immediately respond to a request for details of what it believed to be misconduct.
The U.S. government and others have accused Alibaba of allowing sales of counterfeit goods but Wednesday's report was the first time the Chinese government has criticized a company that is a leading star in an Internet industry communist leaders are eager to develop.
"Illegal business exists on Alibaba Group's trading platforms, and for a long time the company has failed to pay adequate attention and failed to take measures to stop it," the government report said. "This not only is the biggest crisis of integrity faced by the company since its founding, but also has hurt other Internet companies that try to operate legally."
It said Alibaba allowed "illegal advertising" that misled consumers with false claims about low prices and other details. It said some Alibaba employees took bribes and the company failed to deal effectively with fraud.
The report said regulators and Alibaba would work together to improve management but gave no details of planned changes.
Alibaba, founded in 1999 by Jack Ma, a former English teacher, was one of China's earliest Internet companies. Its IPO made Ma China's richest entrepreneur with a net worth of $25 billion.
Alibaba earned $485 million in the three months ended in September, which was its first quarter as a publicly traded company, and generated revenue of $2.7 billion. It said the total amount of goods sold rose 49 percent and the number of active buyers rose 52 percent to 307 million.
The U.S. Commerce Department added Taobao in 2011 to a blacklist of "notorious markets" linked to sales of pirated and fake goods. The company was removed the following year.
In December, the company said it had removed 90 million listings for goods that might have violated intellectual property rights. The company said it spent $161 million from the start of 2013 through late 2014 on blocking counterfeit goods and improving consumer protection.
In January, Alibaba and the U.S. Consumer Product Safety Commission announced an initiative under which the Chinese company will prevent vendors from exporting to the United States goods that are the target of recall orders.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china criticises alibaba in report withheld until after ipo Arab Today, arab today china criticises alibaba in report withheld until after ipo

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday