Recently, controversy arose in China’s m-commerce market when Alibaba, the company behind the online shopping website Taobao, blocked the instant chat mobile app WeChat, the latest version of which had the potential to be utilised during transactions by Taobao sellers in such a way that transactions would thus take place outside of Taobao. Kevin Wang of CMS China discusses the block and whether it constitutes abuse of a dominant market position under Chinese anti-monopoly law.
The explosive growth of the mobile e-commerce market in China has led to fierce competition between the companies in the relevant industry sector. Such competition recently escalated with the block of WeChat by Alibaba on Taobao (which is similar to eBay).
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