Chinese e-tailers Alibaba and JD.com can, for now, bury their hatchet. JD.com will receive one billion yuan (equivalent to 110.25 million pounds) from Alibaba as a years-long lawsuit comes to an end, Reuters reported. The e-tailers have been accusing each other of monopoly practices since 2017.
According to the court, Tmall, Alibaba’s brand platform, abused its market dominance. Tmall required sellers to cooperate with only one of the two marketplaces, causing “JD.com to suffer serious damage”.
“This ruling is not only a fair decision for JD’s opposition to the ‘choose one from two’ monopoly, but also a milestone in upholding market fairness and the competitive order through the rule of law,” JD.com’s statement said, according to Reuters. “It will be an important moment in China’s legal process against monopolies.”
Alibaba let Reuters know that they were aware of the ruling and “accept the court’s decision”.
JD.com and Alibaba have been accusing each other of monopoly practices for years. Thus, JD.com first filed a case, in 2017, after which Alibaba followed suit.
