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Alibaba Group Holding Ltd (NYSE:BABA) Boss Defends Firm, Expresses Regret Over Suit

On Tuesday, Jack Ma defended Alibaba Group Holding Ltd (NYSE:BABA) against counterfeit goods allegations from KERING UNSP ADR (OTCMKTS:PPRUY).

Jack Ma conveyed his disappointment with the lawsuit that was filed by the luxury products manufacturer. Kering is one of the most lucrative consumer goods company, and it owns major Designs such as Yvet Saint Laurent and GUCCI.

Kering launched a lawsuit against Alibaba raising claim that the e-commerce giant has been facilitating the sale of counterfeit products that imitate those of Kering. This is not the first time that the firm has accused Amazon. In August 2014, Kering brought forward a similar complaint.

In a recent press conference, Mr. Jack Ma defended his company by reporting that Amazon has already initiated collaborations with various brand owners. The online retailer has a team of operatives handling the situation.

At the Seoul conference, he also expressed regret over Kering’s decision to sue. Ma also added that the lawsuit has brought some negative impact. He claimed that the suit was facilitating internal clashes instead of promoting the fight against a common adversary.

Kerang’s lawsuit brings various complaints to the table. For instance, the sale of unlicensed copies, permitting payment for counterfeit goods racketeering and mail fraud. Alibaba has already disputed most of these claims.

Kering reported that the company resolved to a lawsuit as part of its efforts to regain its client base. The firm claimed that it did so with the aim of maintaining trust in their customers regarding the authenticity of their luxury products.

Following the complaints, Alibaba Group Holding Ltd (NYSE:BABA) has responded by creating a series of measures to ward off counterfeit goods from its platform. So far, the company has over 2000 workers dealing with the authenticity issues. Additionally the company has spent over $160 million to put those anti-counterfeit measures in place.

The online retailer has been on the successful fast lane with expansion measures, and the lawsuit is one of the few obstacles that it has come across.

Published by Pamela Garcia

Pamela Garcia is a keen follower of U.S. stock market

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