Losing Billions of Dollars by Breaking The Law

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Alibaba is a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer, and business-to business sales services via web platform. They not only serve people in China, but also serve millions of buyers and suppliers around the world. The State Administration for Industry and Commerce (SAIC) issued a "white paper" on Wednesday. It indicated that Alibaba allowed the sales of counterfeit goods on its Taobao e-commerce platform. The SAIC's report came out in July but it was withheld until now to avoid disrupting progress of Alibaba go to the U.S. stock market. After the report and disappointed quarterly revenue report, $38 billion decreased on Alibaba's market capitalization. However, a spokesman for the regulator said the report carried no legal force.