GUANGZHOU, China – China’s State Administration for Market Regulation, the country’s trusted watchdog, announced Thursday that it will investigate the main operator of e-commerce platform Vipshop on suspicion of unfair competition. The move comes amid criticism from competitors that the company has unfairly locked in buyers.
Vipshop is backed by internet giant Tencent Holdings.
The SAMR has not disclosed the specific type of fraud the company suspects. In September, a contestant issued a statement accusing Vipshop of forcing store owners not to do business with other e-commerce companies.
Vipshop said it will actively cooperate with the investigation.
Regulators tighten scrutiny of internet giants. In December, the SAMR investigated the largest e-commerce group, Alibaba Group Holding, on suspicion of breaching trust law. Alibaba, JD.com and Vipshop have also been fined for improperly setting prices.