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Alibaba Group Holding Ltd (BABA) & Jack Ma In Trouble Again For Violating Drone Rules In China

Alibaba Group Holding Ltd (NYSE:BABA) is a very strong company in China and it has majority of the e-commerce market in the country. Jack Ma is currently trying to expand the reach of Alibaba Group Holding Ltd (NYSE:BABA) globally as well, by entering global markets. Controversies and problems are nothing new to Jack Ma and Alibaba Group Holding Ltd (NYSE:BABA) has been hit by another controversy by Chinese Authorities. Bloomberg’s Christine Hah reported about this on Bloomberg Business from Beijing.

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 Alibaba Group Holding Ltd (NYSE:BABA) has recently a cut a one-time promotional test partnership with a local logistics company in China to deliver Ginger tea packets via drones/RC helicopters on February 4th.  Alibaba Group Holding Ltd (NYSE:BABA) said at the time that the delivery complied to all the rules and regulations and they had got all the necessary clearances to deliver the goods.

“[…] Basically, this time Alibaba had partnered with a logistics company to deliver Ginger tea packets via remote controlled helicopters, and this was a one-time promotional test for February 4th. Now it said at the time that the deliveries comply with the necessary rules, but now military and civil aviation authorities who met said that Alibaba didn’t get military permission for the flight, which are deemed as the security risk,” Hah reported.

But now the military and civil aviation authorities in China claim that Alibaba Group Holding Ltd (NYSE:BABA) hasn’t got military permission to make these deliveries airborne. Hah reported that 80% of the Chinese airspace is controlled by Chinese military and hence getting their permission for such aerial delivery is a must. She pointed out that Alibaba Group Holding Ltd (NYSE:BABA)’s drones might have definitely touched Chinese military airspace.

Hah said that Alibaba Group Holding Ltd (NYSE:BABA)’s Spokeswoman Rachel Chan replied in a mail that the company is looking into this as the deliveries were arranged by their logistics partner. Hah added that Alibaba Group Holding Ltd (NYSE:BABA)’s logistics partner declined to comment on the issue.

Hah said that the Military, Civil aviation authorizes and Beijing Public safety board are discussion this and are coming up with new rules and regulations for such tests. She mentioned that Alibaba Group Holding Ltd (NYSE:BABA) had plans of doing such promotions in other Chinese cities after beijing, but she doubts that it might not happen now.

Disclosure: None

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