(Yicai Global) Sept. 14 -- Chinese e-commerce newcomer Aikucun has reported rival Vipshop Holdings to the authorities, accusing it of unfair competition by forcing vendors to choose between the two platforms.

Hundreds of merchants on the Aikucun platform have said that since Aug. 4 they have been asked by Vipshop not to trade on both platforms, or face being kicked out of Vipshop, operator Shanghai Zhongdan Information Technology said on its Weibo account.

Such actions are in violation of e-commerce and other laws, have caused serious economic losses to vendors, deprived consumers of their right to choose and hindered the business development of other e-retailers, Zhongdan Information said.

The firm has submitted reports to the State Administration of Market Supervision and Administration and three local regulatory agencies, it added.

The charges are groundless, Guangzhou-based Vipshop told Beijing Business Today without going into further details.

Founded in 2017, Aikucun is a relative newcomer on the e-retail scene. It has more than two million registered merchants and has fundraised CNY1.5 billion (USD220 million), according to August data.

Vipshop, which started off in 2008, is a more established brand, well-known for its online discounts. It is facing fierce competition from the two industry giants Alibaba Group Holding and JD.Com.

Vipshop [NYSE:VIPS] closed down 1.44 percent yesterday at USD16.40, with a market capitalization of USD11.1 billion.

Editor: Kim Taylor