Alibaba Taobao Will Quit Taiwan In The Next Six Months

by MarkJ Guillen CEO

Alibaba and its online marketplace, Taobao, both have been asked to leave Taiwan within the given deadline.
Alibaba Group Holding is one of the biggest businesses in China and the world. In fact, the company is the biggest B2B business in the world, which owns several online marketplace platforms that are ruling the online retail sector. It now directly competes with the likes of Amazon and EBay, etc.

In recent times, the company has gone through a bad patch from which it is still recovering. The accusations and allegations for counterfeiting goods on its platforms gave it a tough time in the market. Furthermore, another decision made by Taiwanese government is bad for Alibaba Group.

Previously, the authorities in Taiwan asked Alibaba company to leave the region within a time-duration of six months. Now, it is believed that the same authorities have asked the corporate giant to halt operations of one of its marketplaces, Taobao, within six months. These authorities want the operations to be closed down because the e-commerce giant failed to apply for the permit for a Chinese mainland company to do business on the island.

Back in time, Taobao registered itself in the region as being a Hong Kong company but did not apply for a permit after that. Thus, it faced consequences for that and a fine was imposed of $7,848 (NT$240,000) on it. This is the second time Alibaba will be struck with the same expulsion in the same year, after failing to apply for the proper required permits in the region.

Taiwan asked Alibaba.com in March to leave the region in the given time-period for the same reasons for which Taobao was asked to leave. However, Alibaba was fined $3,924 (NT$120,000). The corporate giant stated on the Chinese media on Monday, “We were trying to communicate with relevant regulatory authorities in Taiwan and its Taobao.com and its business to business platform would not be affected on the island.”

According to the lawsuit, Alibaba has established a conspiracy to “manufacture, offer for sale and traffic in counterfeit products bearing the brands' trademarks without their permission". This can be governed from the fact that a seller on Taobao was reportedly selling fake branded Gucci bags for a price range of $2-$5 per bag. In case a buyer wanted to buy 2000 bags, these rates were implemented. In reality, an average Gucci bag is sold for $795.

Alibaba has a lot of burden on its shoulders now. Previously accused of counterfeiting goods and now being asked to leave Taiwan as well due to illegal activities; it is making a fool out of itself. It is recommended for company to come out and clarify its doings in the domestic and international markets.