Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

JD.com Blames Alibaba For Restricting Merchants From Participate In Its Promotion

|Includes: Alibaba Group Holding Limited (BABA)

Other e-commerce companies are also encouraged by Alibaba's Singles Day strategy and starts offering their own such events.

JD.com has complained to the Chinese regulatory body, alleging Alibaba of utilizing its substantial market influence to pressurize vendors to stop helping JD.com to market the most populated country's huge 'Single Day' online buying festival. The measure, as revealed on Thursday, highlights the growing stakes behind the festivity, which is known as the biggest online trading event scheduled to take place in the second largest economy on November 11.

Alibaba news affirmed JD.com stated on Tuesday that the complaint was filed on Monday with the State Administration of Industry and Commerce, which is known for overseeing corporate registrations, rivalry, and other issues. It made an accusation that the company destabilized the e-commerce market by forcing vendors to pull out from the organization's Singles Day promotions.

Alibaba has rejected the allegations. Its spokesperson stated, "JD is panicking because they're losing. They simply can't match our customer and merchant experience and logistical scale because Alibaba wins with customers and merchants as we provide a superior experience for users on our platforms."

The complainant is the Southeast Asian country's second biggest ecommerce company as far as its transaction value is concerned. Nevertheless, Alibaba is much bigger. Its Tmall platform and JD.com have been battling for brands to become a part of their electronic trading markets, which have proved to be the fastest expanding segment in the electronic retail sector worth $441m (2.82 trillion Yuan) in terms of transaction volume in 2014.

Alibaba news today reported that well-known companies, such as Samsung, Uniqlo, and Nike have established their stores in these electronic trading centers. That business is expanding at a pace greater than that of enterprises such as Taobao, an online marketplace that has a greater number of sellers.

In September, the regulatory authority introduced a new directive with a condition that specifically prohibits online selling organizations banning vendors from participating in promotional events on other networks. It could not be assumed that how SAIC would address the complaint.

Previously this year, SAIC alleged Alibaba in a document of letting merchants sell counterfeits on its marketplaces, and then backed out by removing the paper from its webpage without informing a reason. The authority's officials could not be reached for sharing their views.

Alibaba Breaking news exclaimed that last week, JD.com took the shoe brand, Mulinsen, out of its platform, stating that the brand stopped supporting its efforts to market the November 11 selling day even after it had disbursed money to market the brand. It could be claimed that the regulator's decision would not only determine the prospective of the two online companies but also play a key role in determining the worth to lead China's online marketplace. This particular event has encouraged other e-commerce companies to start offering their own Singles Day events.