Tomahawk, WI 09/17/2014 (Basicsmedia) – Alibaba Group Holding Ltd (NYSE:BABA) is set to carry out the biggest IPO in history while still struggling with the niggling problem of counterfeit goods on its online store, according to CNBC’s Eunice Yoon. Fakes have flourished on Alibaba platforms and expected to raise concerns with regulators in the U.S.

“Alibaba is a big player in e-commerce, but many brands complain it’s also a titan in China’s counterfeit trade,” said Mrs. Yoon.

One trader selling CNBC’s counterfeit stickers on Taobao is’ quoted as saying that he has never received warnings about his illegal trade practices. The remarks essentially arouse questions as to whether Alibaba is’ committed at eradicating the vice. Alibaba Group Holding Ltd (NYSE:BABA) runs a completely different business model when compared to other giants online stores such as Amazon.com, Inc. (NASDAQ:AMZN) and eBay Inc. (NASDAQ:EBAY).

Alibaba does not own any of the merchandise sold on its platform thus making it extremely difficult for it to control the counterfeit vice. The giant Chinese online company relies on commissions from the sale of goods on its platform. Cracking on this counterfeit products has thus not been a top priority for the company as it would result in reduced earnings.

Operating in the U.S. is expected to be the biggest test for the company at the back of laws that govern the sale of counterfeit products. Alibaba Group Holding Ltd (NYSE:BABA) has already indicated it’s willingness to do away with merchants selling counterfeit brands on its network.

“[…] in its recent SEC filing the firm said it is taking down counterfeits and making it easier for brands to report infringements. Now that Alibaba is listing in New York, the question is, will Alibaba Group Holding Ltd (NYSE:BABA) feel investor pressure? To truly stop the fakes, “said Mrs. Yoon.

Alibaba Group Holding Ltd (NYSE:BABA) is reported to have signed a series of anti-piracy agreements as it pushes-on with its drive to eliminate fakes from it’s platforms. The giant online store has already removed over 114 million fake products from it’s platform heading into the IPO.

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