WASHINGTON (AP) – E-commerce giant Alibaba said Friday that US regulators have requested information on Chinese authorities’ allegations that the company has failed to do enough to prevent fake goods from being sold on its websites.
Alibaba said it is cooperating with the request from the US Securities and Exchange Commission. The company, which raised a record $25 billion last year in its initial sale of stock in the US, said the SEC is seeking information related to its interactions with Chinese regulators.
China-based Alibaba Group Holding Ltd. disputed the allegations, firing back at the Chinese regulators with charges of bias and misconduct. But the company quickly settled the public dispute with the government, promising to do more to fight online sales of counterfeit goods.
The SEC’s letter states that its inquiries should not be seen as indicating Alibaba has violated any US securities law, the company said.
SEC spokesman John Nester declined to comment.
Alibaba also said it wasn’t legally obligated to disclose the SEC inquiry but chose to do so “because we value being open with our investors and feel that disclosure could help avoid false rumors or speculation”