Alibaba is suing two vendors accused of selling fake Swarovski watches on its Taobao e - commerce platform , its first legal action against counterfeiters following years of claims that it turns a blind eye to fake goods on its website . China 's largest online competitor is claiming CNY1.4 billion ( $ 201,670 ) in damages for contract and goodwill violations . It has also compiled a list of vendors against whom it may be taking similar actions . The move comes a couple of weeks after Taobao was fined by the US for selling counterfeit watches .
Alibaba is suing two vendors accused of selling fake Swarovski watches on its Taobao e-commerce platform, its first legal action against counterfeiters following years of claims that it turns a blind eye to fake goods on its sites. China's largest online marketplace is claiming CNY1.4m ($201,670) in damages for contract and goodwill violations. It has also compiled a list of counterfeiters against whom it will be taking similar actions. The move comes a couple of weeks after Taobao was blacklisted by the US for selling counterfeit goods.