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Business · Accommodation & Catering · TMT
Pinduoduo accuses Tmall of exploitative business practices
CKN
2018/10/11 07:54:09
1,712

Oct 11, 2018 (China Knowledge) - Pinduoduo <PDD.NASDAQ> Yesterday celebrated its third anniversary of company’s founding. The co-founder of Pinduoduo, Dada, however, lambasted his rival Alibaba's Tmall in his WeChat Moments.

A number of online store owners have reported that they have been forced to face an “either/or” choice by Tmall, which led a large number of brand merchants to forcefully withdraw their products from Pinduoduo's 3rd anniversary celebration and even closure of their flagship stores.

In response to the news, Alibaba said it is pure fiction.

Before Pinduoduo, JD.com's CEO Liu Qiangdong also denounced this practice as immoral. Last year, JD's official flagship stores of dozens of well-known clothing brands, including Only, Heilan Home and Jeanswest, announced their withdrawal from JD.com, while stores on other e-commerce platforms, such as Tmall, continued to operate.

Mr. Liu commented that "choose one of two" was a sign of incompetence, any unethical methods will not win in the end.

Previously, China's regulators also focused on the issue of e-commerce platforms forcing merchants to "choose one of two" option. To address this phenomenon, they made the e-commerce law which will come into force on January 1, 2019.

The law stipulates that "any e-commerce platform or an operator shall not make use of the service agreement, trading rules and technical means, such as, operators within the platform transaction, the transaction price in the platform and deal with other business operators, for unreasonable restrictions or additional conditions".

This means that from next year, it will be illegal for e-commerce platforms to force merchants to choose one of two.

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