Alibaba and AUS Merchant Services, an Ant Group unit that operates Alipay, agreed to pay US$600 million to settle a US federal investigation. The probe centered on illegal pharmaceuticals and other prohibited products sold through Alibaba’s platforms between 2016 and 2024.

The US Department of Justice said overseas customers made about 80,000 purchases worth more than US$200 million of products that lacked required approvals under US drug, medical device, or import laws.

Under the agreement, Alibaba will pay a US$125 million criminal penalty and forfeit US$200 million. Meanwhile AUS will pay a US$85 million criminal penalty and forfeit US$190 million.

The companies admitted they failed to stop some merchants from using Alibaba’s marketplace and AUS’s payment services to sell and import prohibited goods into the US.

🔗 Source: Bloomberg

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