Key facts
- Alibaba and AUS Merchant Services will pay $600 million to settle allegations.
- The settlement resolves claims of failing to prevent illegal pharmaceutical sales.
- The companies allegedly facilitated the sale of illicit drugs and equipment.
- The agreement is a non-prosecution agreement under which the companies will pay the total sum to settle charges that they violated the Federal Food, Drug, and Cosmetic Act.
Alibaba Group Holding Ltd. and its U.S. payment processor, AUS Merchant Services Inc., have agreed to pay a combined $600 million to resolve allegations that they failed to prevent the export of illegal drugs and drug-making equipment to the United States. The settlement, announced Wednesday, is under a non-prosecution agreement with the U.S. Justice Department. The companies were accused of violating the Federal Food, Drug, and Cosmetic Act by failing to prevent their platforms from being used for illicit sales to Americans. This resolution addresses claims that the companies facilitated the sale of illicit drugs and equipment, marking a significant outcome to a U.S. probe.