Multinational Company in Australia
Alibaba is a Chinese Multinational Billion-dollar company. This company was founded by Jack Ma and started around 4th April 1999. Alibaba specializes in business-to-business, customer-to-business and various other services. It provides huge variety of items at wholesale price and also provides huge discounts on items if were bought in huge quantities. This company turned out to be a huge boon for various small-scale business companies as it made their business go international and delivering their items through various methods of shipping.
Alibaba on 4th February 2017 launched one of major their headquarters in Melbourne, Victoria. The company has aimed to help out more than 1,700 businesses. It mainly operates under e-commerce but has set its goals to enter cloud computing as well. Worldwide Alibaba has more than 60,000 employees and majority of them being Chinese while less than 6% being Australian. Alibaba has its global headquarter situated in Hangzhou, China.
Legislative Regulatory Framework affecting Alibaba
PricewaterhouseCooper (PwC) is the biggest multinational firm service company in the world which was formed during 1998.
In the year 2016, PwC and SSAFE found out that food fraud is billion-dollar problem a year. To tackle such a situation and to improve quality of food, PwC and Alibaba partnered with Australia Post and Blackmore to launch Blockchain framework. This framework is used to authenticate, verify and provide report on the items involved in food fraud. This framework makes Alibaba to work efficiently as it is an e-commerce giant and provides various large-scale items which includes food processors etc. Maggie Zhou who is the managing director of Alibaba in Australia approves the idea and thinks Australias regulatory framework can be used to test blockchain framework.
GST which stands Goods and service tax was introduced in Australia a long time before was updated and implemented from 1st July 2018, this type of tax affects ecommerce business in a bad way. GST is a service tax which applies on businesses whose revenue is more than 75,000$ per annum. As small businesses buy their products from overseas, they come under such a tax and have to pay a specific amount. This framework affects businesses whose revenue is below 75,000$ as they are making use of Alibaba. To tackle such a situation management of Alibaba approached the senate regarding such a matter.
Alibaba depends highly of the internet provided in its place of origin i.e., China. Since Alibaba is present worldwide it should have a sustainable internet connection and it maintains such a connection through state owned telecommunication under administrative control and regulatory supervision of the Ministry of Industry and Information Technology of China.
One of the Australian guidelines for ecommerce includes information about electronic delivery of an item. Such an item should not be delivered through specialized hardware or software. To comply with such a guideline Alibaba delivers item through a local or national delivery service. For instance, DHL is used to deliver items from Alibaba to any part of the country based on the availability.
Alibaba takes into consideration the policies related Copyright infringement. It has taken down more than 300 million products from its website and has also made it easier for big brands to put on request to remove fakes. It has also provided an update for its Intellectual Property Protection (IPP) platform which allows companies to file for piracy.
Cross-border e-commerce policy of china allows easily clearance of items that comes from foreign companies. Eventually foreign sellers can sell huge number of items to their consumer in china by easy bypassing the law.
According to Australian ecommerce law, for business to take place personal information of the consumer should be known. This law in turn aims to protect minors under the age of 16 as it does not allow them to purchase stuff unless they seek the consent of their parents. Such a security is provided on Alibabas portal when a consumer tries to sign up.
Australian Consumer laws protects the consumer from losing their money. Various e-commerce websites are now available worldwide and such websites sometimes harbor sellers who cheat consumers and to protect them from getting cheated e-commerce website has to comply with Australian consumer law. For instance, if a business person buys huge stock from a seller overseas and he does not receive his stock then such a law comes into action and ensures that the businessman gets his money back in such cases. Alibaba and many other e-commerce websites support such a law and they voluntarily showcase them on their website to gain consumers trust.
E-commerce law in Australia guarantees a consumer certain options in a case where seller does not comply with him. This includes filing for refund, repair or replacement. By providing such options to a consumer makes it easier for them to browse through various e-commerce websites safely. Alibaba complies to such a law and provides these options under their order page to protect their buyers right.
Due to implementation on shipping laws, most of the ecommerce website cannot ship aerated drinks, fruits, vegetable, perfumes etc. For instance, Alibaba does not provide drinks or food items on their webpage as such items cannot be delivered quickly and also, they pose huge risk to be shipped from one country to another through flight or freight.
One such law that helps consumer from getting bothered is Spam Act 2003 law. This law makes it necessary for websites to have an unsubscribe button under their message. For instance, when a consumer logs onto Alibaba and checks out their items he then later gets a number of spam messages relating to the item he saw. Based on that the consumer has a choice to unsubscribe from such messages.
Electronic transaction act 2001 makes it easier for various ecommerce websites to make their transactions online. This provides hassle free and easy payment of item. Alibaba has implemented such an option on their portal as well rather than having cash on delivery. By having such an option on can easily pay or get refunded.
One of the Australian ecommerce law allows the consumer to have a copy of transaction, order or acceptance they make. The Chinese MNC supports this law and provides an online copy to the consumer at the time of purchase and also provides a hard copy when he receives his item.
State and Territory fair trading legislation makes it compulsory for ecommerce website to not showcase misleading information on goods that they sell. Alibaba which is a giant ecommerce website showcases some of those products as they have huge number of sellers but by implication of such rule, they only showcase products which are true with valid information on them.