China’s Wanda Group, the conglomerate that owns the country’s largest electronics manufacturer, has been hit with a series of antitrust lawsuits.
The company has filed multiple lawsuits against dozens of foreign companies, including Alibaba, in China, where the business is heavily regulated.
The suit against Alibaba, which is a subsidiary of the Chinese conglomerate Dalian Wanda, claims that the online marketplace, which operates in more than 150 countries, is being abused by foreign companies who do not pay Wanda royalties on sales.
“The court’s order is an important step towards ensuring that foreign firms pay Wana royalties on their sales,” Wanda’s vice president of international legal affairs, Zhang Jixin, said in a statement.
A spokesman for Alibaba said that the company has received the court’s decision and will appeal the decision.
Last week, Wanda filed another antitrust lawsuit against a Japanese online retailer, Amazon, accusing it of abusing its market dominance.
Wang Yulan, Amazon’s vice chairman and chief executive officer, said that while the lawsuit was filed to address the unfair competition between Wanda and Amazon, he also believes that Wanda should have the right to protect its market share.
As a result of the lawsuit, Waidan’s shares fell 2.6 percent.
Earlier this year, Wao bought the company’s parent company Wanda Communications, which had been bought by China’s DalianWanda in February 2018.
According to Waidan, the purchase price was not high enough to secure its full control of Wanda.
“As a private company, we are concerned about any possible consequences for our business, especially if Wanda has the ability to raise additional funds,” A spokesperson for Waidans chairman, Wang Xiang, said.
Analysts expect Wanda to continue to face regulatory issues in the near future.
Chinese regulators are trying to ensure that the countrys largest conglomerate does not abuse its market power to charge foreign companies large amounts of royalties for online sales.
In addition to WandaWanda is the parent company of Alibaba, a subsidiary that is controlled by the Chinese company Dalian, which also owns the Alibaba Group.
DalianWang owns Wanda Wanda is also the largest Chinese ecommerce company, with sales of more than $9.3 billion in 2017.
Wanda Group’s chairman, Zhang Jianping, said earlier this year that Waidanz would continue to operate its business under the “one-click” approach that the Chinese government had introduced, with a focus on local sellers.
It is expected that Wanyas future antitrust cases will be more complex than the ones against Alibaba and WandaComms (link in Chinese) The Chinese government recently banned a number of foreign firms from bidding on Wanda businesses, including Amazon, Alibaba, and Yahoo.
In September, Wadamart, the Chinese e-commerce giant that operates the Wanda ecommerce site, said it was cutting ties with the online retailer.
Meanwhile, another Chinese online retailer announced on Tuesday that it will close its doors and shut down on December 16.
On Tuesday, Wanyamart announced that it was selling all of its online inventory in order to focus on domestic sellers.