Alibaba, U.S. Payment Unit Agree to $600 Million DOJ Settlement Over Illegal Pharma Sales
- The Department of Justice said July 1 that Alibaba Group and its U.S. payment processor AUS Merchant Services will pay $600 million to resolve allegations they failed to stop the sale of illegal pharmaceuticals, controlled substances and drug-counterfeiting equipment to U.S. buyers, per Fox Business.
- Alibaba entered a non-prosecution agreement admitting that from 2016 to 2024 it failed to block roughly 80,000 illicit sales valued at more than $200 million on its platforms.
- The settlement adds to U.S. regulatory pressure on Chinese e-commerce platforms and could shape compliance and merchant-vetting practices for cross-border retail.