SAIC investigating Alibaba after JD reports it forces vendors to pick a side for Singles Day [UPDATED]

UPDATE: JD’s official PR Twitter account has announced that China’s State Administration of Industry and Commerce is now investigating Alibaba.

SAIC is formally investigating Alibaba after dozens of brands alleged that BABA illegally pressured them to pull out of JD promotions

— JD.com Spokesman (@JD_Spokesman) November 5, 2015

The SAIC has referred the anti-competitive practices investigation into Alibaba to the Zhejiang branch of the SAIC.

— JD.com Spokesman (@JD_Spokesman) November 5, 2015

Tech in Asia‘s original story about the controversy, which was published on Wednesday, is below.

China’s biggest online shopping holiday is coming right up. And as China’s two biggest etailers – JD and Alibaba – gear up for another day of sales, the competition is getting scrappy.

This year, JD says that Alibaba is forcing apparel merchants to choose between participating in Singles Day sales on Tmall or on JD – they’re not allowed to do both. In a report filed with China’s State Administration for Industry and Commerce (SAIC) requesting a formal investigation, JD says Alibaba has told numerous merchants that participating in Singles Day events on both platforms will result in punishments on Tmall, like reduced traffic or lowered rankings.

JD argues that this move violates consumer interests by denying users access to the best deals. “Pressuring brands not to participate in our promotions limits choices for both consumers and brands, and would represent an obvious violation of China’s laws,” a JD representative told Tech in Asia.