Saturday, November 7, 2015

JD VERSUS ALIBABA IN CHINA


JD ratchets up its battle with Alibaba

Friday, November 06, 2015

China's commerce regulator will investigate accusations by JD.com that rival Alibaba Group Holding is unfairly pressuring merchants to shun competing platforms, JD said, ratcheting up a battle between the nation's two biggest online retailers.
The State Administration for Industry and Commerce has accepted JD's request to look into Alibaba's attempts to lock in merchants ahead of the crucial Singles Day promotion next week, JD said in an online post yesterday.China's second largest web retailer has accused its larger rival of forcing merchants to choose between the two, which it said hampers competition and violates regulations.


Both firms expend major resources to secure merchant partners for the promotion. Alibaba alone has invested US$4.6 billion (HK$35.8 million) for a stake in a brick-and-mortar domestic retailer, in part to challenge JD's strength in consumer electronics. Last year more than 57.1 billion yuan (HK$69.7 billion) worth of transactions were conducted through Alibaba's platform during the promotion, more than the combined total of all US merchants on Cyber Monday.Meanwhile, Alibaba-owned Ant Financial will buy a controlling interest of Debon Securities from Fosun International (0656) chairman Guo Guangchang. STAFF REPORTER and BLOOMBERG