As Chinese e-commerce platform Pinduoduo faces a massive stock price drop following investigations into peddling fake goods, Alibaba appears to be gloating. Alibaba’s Anti-Counterfeiting Alliance announced on August 3rd that it now has over 100 members, NetEase reports.

Alibaba’s Taobao is known to offer fake goods itself: in January, the US Trade Representative put the platform on its blacklist for the second year in a row. This prompted the e-commerce giant to launch the Alliance the very same month. Alibaba’s anti-counterfeiting partners now include brands from 16 countries and regions covering 12 industries.

The company is working with Microsoft, Apple, Luis Vuitton, and other brands—an important step for a platform well known for its rich offering of knock-offs, especially Luis Vuitton-themed bags, watches, and random objects such as trash cans.

Over the past year, Alibaba has helped bust 247 counterfeit goods sellers with more than 300 people arrested by law enforcement agencies involving nearly RMB 1 billion of goods, the report states. The change has also been noted by many ordinary shoppers (including the author of these lines) who are having a hard time finding good knock-offs on Taobao.

Meanwhile, the company that shook Alibaba’s confidence in the e-commerce market is under investigation from the Shanghai’s Industry and Commerce Bureau ordered by China’s State Administration for Market Regulation (SAMR). Pinduoduo stock prices have dropped prompting seven law firms representing US-based investors to launch their own investigations and evaluate if the company’s officers and/or directors have violated US federal securities laws.

The SAMR also announced today that any third parties or companies doing business on an e-commerce caught selling fake goods on platforms such as Pinduoduo would be disciplined. SAMR called on companies to crack down on the sale of counterfeit goods, trademark infringements, and illegal advertisements.

Masha Borak is a technology reporter based in Beijing. Write to her at masha.borak [at] Pitches with the word "disruptive" will be ignored. Read a good book - learn some more adjectives.

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