Ttkexpress vs Jingdong is a contract dispute

TTKEXPRESS, AN EXPRESS DELIVERY COMPANY, announced on Thursday it is suing its partner Jingdong, one of the largest e-commerce companies in China, claiming it is interfering in its business. Southern Metropolis Daily comments:

Ttkexpress claims Jingdong is trying to restrict it to doing business with only clients designated by Jingdong.

Jingdong operates its own logistics company, as well as 16 contracted express-delivery companies, including Ttkexpress. The other 15 delivery companies have so far not made any similar complaints against Jingdong, which suggests that the e-commerce company is not trying to elbow out all of its contracted express delivery companies, so as to benefit its own delivery company.

The fact is Jingdong’s own logistics company, though efficient and reliable in many big cities, still cannot meet all the delivery needs of the company. It has to cooperate with the other express delivery companies, especially to cover the remote areas.

To protect the interests of the consumers as well as its partners, Jingdong is justified in taking measures to minimize the negative influence caused by any of its partners, be they retailers or delivery companies.

Jingdong has said it will “resolutely” respond to the law suit, making the counterclaim that Ttkexpress had broken the contract between them because of the flood of complaints about the poor service provided by Ttkexpress.

There should be clear stipulation of the rights and obligations of Jingdong and the express delivery companies in their contracts, which should serve as the foundation to settle the disputes between the two parties.

The dispute between the two business partners is confined to a breach of contract. Neither the Antiunfair Competition Law nor the Antitrust Law is applicable. It is too early for the Ttkexpress to overstate the routine bickering as a legal case related to unfair competition in an attempt to win the public’s sympathy.