Alibaba Group and its US-based payment processor, AUS Merchant Services, agree to pay $600 million to resolve a U.S. Justice Department investigation. The DOJ alleges that Alibaba.com and AliExpress.com, together with related payment and merchant activity, enabled the sale and attempted importation of illegal pharmaceuticals and controlled substances into the United States. Multiple outlets report that prosecutors also raised concerns about other prohibited items, including regulated chemicals and pill-making equipment.
The settlement is described as involving non-prosecution agreements, with the resolution designed to end the federal probe without the companies facing prosecution over the alleged conduct. Bloomberg and other sources characterize the payment as part of resolving whether Alibaba and its payment-related systems failed to prevent illicit listings and related transactions from merchants.
The announcement is presented as one of the largest criminal resolutions involving a Chinese technology company. The sources agree on the settlement amount, the parties involved (Alibaba and AUS Merchant Services), the core allegation (failure to prevent illegal drug sales/imports), and the role of U.S. federal authorities in reaching the agreement.
