A Hong Kong regulator has pointed the finger at Alibaba for breaching acquisition rules when it purchased a healthcare company two years ago, saying the Chinese e-commerce company bought the firm on “favorable terms” due to a connection with the company’s executives.

Alibaba purchased CITIC 21 CN in 2014 for $170 million USD, which has since been restructured under Alibaba Health Information Technology Ltd.

According to a ruling from the the Takeovers and Mergers Panel of the Hong Kong Securities And Futures Commission posted on Wednesday, Alibaba also purchased another medical technology firm at the time, Hebei Huiyan Medical Technology Co., which was owned by the brother of CITIC 21 CN’s vice chairman.

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Cate Cadell

Cate is a tech writer. She worked as a journalist in Australia, Mongolia and Myanmar. You can reach her (in Chinese or English) at: @catecadell or catecadell@technode.com