People walk past the Alibaba logo on its building in Xuhuibinjiiang Park, also known as 'AI Park,' home to many Chinese companies involved in AI research, in Shanghai, China, in March. This week the company agreed to pay the United States $600 million in fines. File Photo by Alex Plavevski/EPA
July 2 (UPI) -- Alibaba Group Holding Limited, one of the largest companies in China, and its U.S.-based processor, AUS Merchant Services, will pay $600 million for allowing merchants to sell illegal pharmaceuticals, controlled substances and more in the United States.
The company entered into an agreement with the Department of Justice, the department announced Wednesday. The companies, via Alibaba.com and AliExpress.com, violated the federal Food, Drug and Cosmetic Act, the U.S. government alleges.
Alibaba admitted that between January 2016 and December 2024, it failed to prevent merchants using its platforms from conducting 80,000 product sales involving imports into the United States, including List I and II chemicals, pharmaceuticals and pharmaceutical counterfeiting equipment, the Justice Department said.
The combined gross merchandise value of these sales exceeded $200 million, a press release said.
