Wednesday, June 1, 2026- Chinese e-commerce giant Alibaba has agreed to pay US$600 million (about S$777 million) to resolve a U.S. government investigation into allegations that illegal drugs, regulated chemicals, and pharmaceutical equipment were sold through its online platforms.
The settlement includes Alibaba and its U.S.-based payment processor, which entered non-prosecution agreements and committed to strengthening compliance measures.
U.S. authorities said the investigation found that between 2016 and 2024, roughly 80,000 illegal transactions involving prohibited products reached American buyers through Alibaba's marketplaces.
Investigators also alleged that internal compliance controls failed to stop the sales, despite concerns raised by some employees. As part of the agreement, the companies accepted responsibility and pledged to improve oversight to prevent similar violations in the future.
The settlement marks one of the largest enforcement actions involving a global e-commerce platform and underscores increasing regulatory scrutiny of online marketplaces. For Alibaba, the agreement closes a major legal investigation but also signals the growing pressure on digital platforms worldwide to strengthen product monitoring, payment controls, and consumer protection standards.
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