Taobao Mall, China’s largest online shopping platform, is facing widespread opposition from the merchants that use its service after announcing significant increases in its commission rates and premium fees on Tuesday, state media reported. Alibaba Group said it will now charge online shops an annual technology service fee of either US$4,702 or US$9,404, up from a previous price of US$940. The fees would be used to overhaul its technology management system, the company said, and vendors may be refunded next year based on their performance and reliability ratings. Analysts said the dispute was an indiction of both the monopoly Alibaba has formed in the e-commerce sector and Taobao Mall’s growing reliance on bigger merchants. Smaller merchants had the most virulent response to the changes. “Clearly, they want to squeeze us out,” said a wedding dress online vendor that gave her name only as Quan.
