Alibaba has acquired its rival NetEase’s cross-border e-commerce platform Kaola.com for $2 billion, the companies jointly announced Thursday.

Alibaba said Kaola.com will continue to operate independently under its current brand after the acquisition. In addition, Alibaba and private equity firm Yunfeng Capital have also agreed to invest $700 million in NetEase’s music-streaming service during its current financing round.

Launched in 2015, Kaola.com is one of China’s largest cross-border e-commerce platforms, providing domestic consumers with access to overseas goods, and was the industry’s market leader last year, according the online consultancy iiMedia Research. However, since last year the NetEase subsidiary has also been mired in allegations that it peddles counterfeit goods — claims the company denies. (Image: VCG)