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CHINA BRIEF | Chinese appliances maker drops Tmall lawsuit, announces Alibaba deal

Let bygones be bygones?

china brief ecommerce

Chinese appliances manufacturer Galanz has withdrawn a lawsuit against Alibaba’s B2C e-commerce unit Tmall and formed a cooperation deal with Alibaba on product innovation and application of Internet of Things technologies, reported local newspaper Nanfang Metropolis Daily on Monday.

When contacted by KrASIA on Monday, Alibaba declined to comment on its relationship with Galanz.

Galanz sued Tmall for unfair competition last October, but requested the Guangzhou Intellectual Property Court to withdraw its lawsuit on June 15, the same day when the court approved it, the report said, citing Alibaba’s lawyers.

The lawsuit originated in June 2019 when Galanz publicly accused Tmall of subjecting the company to search-related penalties, hitting its flagship Tmall store’s sales, right after the company formed a strategic partnership with Pinduoduo, Alibaba’s major challenger, KrASIA reported.

This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.