Caixin Global – Latest China News & Headlines

Home >


CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

ByteDance-Owned TikTok Was World’s Most Downloaded Social Media App in January
Weibo Shares Plunge on Lower-than-expected Earnings, Weaker 1Q Guidance
China’s Handset Shipments Plummet Nearly 40% in January
China Has More Billionaires Than U.S. And India Combined: Hurun Report
Didi to Launch Food Delivery Service in Japan
NIO Strikes Government Deal with New Headquarters and New Funding Plan
Daimler Slims Down China Venture in Global Cost Saving
U.S. Transport Agency Bans Employees From Using TikTok For Work
Huawei Launches New Foldable Smartphone, Targets Android Market with HMS
Industries Switch Up Production Processes to Use Byproducts to Produce Medical Supplies
China Plans to Mass Produce Driverless Cars by 2025 Later Than Previous Forecast
U.S. Companies Fluctuate on Wall Street as Covid-19 Hits Their 2020 Forecasts
Snack Shop Serves Up First IPO from Wuhan Since Covid-19 Outbreak Took Hold
Chinese AI Firm Laiye Secures $42 Million in Series C Funding Round
Japan’s Finance Minister Expresses Concerns Over China’s Digital Yuan
U.S. Allows China’s iFlyTek to Resume Purchases of American-Made Medical Products During Outbreak
China Accounts For Nearly Half of All Global 5G Smartphone Shipments in 2019: Research
Xiaomi-Backed Smart Home Cleaner Maker Raises $641 Million in Shanghai IPO
Foxconn Allows Henan Workers to Return to Its Zhengzhou Complex
Alibaba-Owned Livestreaming Platform Taobao Live Sees Rapid Growth Amid Outbreak
Do ‘Double 11’ Vendors Have to Pick Sides This Year? Alibaba Says It’s ‘Normal Market Behavior’

By Zhao Runhua / Oct 15, 2019 04:44 PM / Business & Tech

Photo: VCG

Photo: VCG

With China’s annual “Double 11” online shopping extravaganza less than a month away, two of the country’s major e-commerce platforms are embroiled in a legal tussle over whether it’s fair to make online merchants “pick sides.” claims its main rival, market-leading Alibaba, has long forced its merchant partners to sign exclusive cooperation agreements for the right to sell their wares on its e-commerce platforms, which include Taobao and Tmall. The agreements essentially prevent vendors from selling their wares on and other e-commerce sites. claims the agreements are an “abuse” of Alibaba’s market-leading status, and is demanding that the Jack Ma-founded internet behemoth pay more than 1 billion yuan ($142 million) in compensation, cease the practice, and issue a formal apology. Alibaba denies its actions are illegal.

The case, according to an official filing, will be heard at the Beijing Municipal High People’s Court. No date has yet been set for the hearing.

Neither Alibaba nor responded to Caixin’s requests for comment.

But on Monday, Wang Shuai, a marketing executive at Alibaba, weighed in with his own views on the subject. Without naming directly, Wang said in a post on his personal Weibo microblog that the practice of “choosing one of two” is “normal market behavior” that guarantees “good money crowds out the bad.” Wang added that because e-commerce platforms offer vendors large amounts of costly resources, like advertising and subsidies, they can only collaborate with brands that demonstrate the most “sincere” willingness to cooperate.

In June, home appliance maker Galanz accused Alibaba of blocking traffic to its products in retaliation for the former’s tie-up with rival platform Pinduoduo during the mid-year “618” online shopping festival. Later the same month, the China Household Electrical Appliances Association, the country’s top industry organization for household appliance manufacturers, cited the Galanz case in calling on all e-commerce platforms to stop forcing brands to “pick sides” and requesting that regulators crack down on such restrictive behaviors.

The Double 11 shopping festival, also known as Singles Day, is held annually on Nov. 11. It is the world’s biggest online shopping event, generating revenue of nearly $31 billion last year.

Related: Home Appliance Firm Claims Alibaba Hid Its Products After Pinduoduo Partnership

Share this article
Open WeChat and scan the QR code