China Regulator Eyes Stronger E-Commerce Oversight After Alibaba Blast
The Chinese regulator that accused Alibaba Group Holding of peddling fake goods is seeking tighter e-commerce rules to curb the proliferation of counterfeits.
Zhang Mao, minister of the State Administration of Industry & Commerce, said greater oversight was needed to protect consumers and create a fairer business environment on the Web.
The spread of knock-off products posed a greater challenge online than in traditional retail, he said.
“Online e-commerce platforms need to take responsibility and protect consumers’ rights,” Zhang said in response to a question about Alibaba during a briefing Monday at the National People’s Congress in Beijing.
“Counterfeit goods are a big concern of the general public and this is also an issue of intellectual property rights protection for businesses.”
Zhang’s remarks came less than two months after the SAIC issued a “white paper” accusing Alibaba’s online malls of accepting bribes and selling fake goods.
The scathing report was part of a wave of regulatory actions targeting major companies operating in China.
The regulator dialed back criticism of the Hangzhou, China-based e-commerce giant after a meeting between Zhang and company founder Jack Ma, with the SAIC describing the report as a meeting memo that lacked “judicial effect.”
The Chinese government projects that e-commerce transactions could reach 18 trillion yuan ($2.9 trillion) this year — an 80 percent increase from 2013.
The SAIC, which oversees business registration, trademarks and competition issues, has closed 21 of its 47 anti-monopoly cases, Zhang said Monday, without elaborating.
He didn’t mention Microsoft, which is the subject of an SAIC probe into whether its Windows and Office software have violated antitrust rules.
Alibaba, which in September held a record-breaking initial public offering in New York, received an inquiry from the US Securities and Exchange Commission last month, requesting more information about the company’s talks with the SAIC.
The regulator had earlier said allegations in the white paper were discussed with Alibaba in July and delayed to avoid affecting the $25 billion share sale.
Bloomberg
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