• Kering to drop U.S. lawsuit against Chinese e-commerce giant
  • Amazon rival stepping up bid to win trust of luxury brands

French luxury group Kering said it will drop its lawsuit against Alibaba Group Holding Ltd., agreeing to work with the Chinese e-commerce emporium to fight the sale of fake products.

The owner of Gucci and Saint Laurent has established a joint task force with Alibaba to take action against sellers of counterfeit products on- and offline, the companies said in a statement.

The deal is a breakthrough for Alibaba as it tries to convince brands that it will step up efforts to counter fakes. Accusations of Alibaba’s unwillingness or inability to eradicate illegal merchandise culminated in a lawsuit filed in the U.S. by Kering in 2015 against the Chinese e-commerce giant.

“It’s clear that Alibaba wants to become a more serious player in luxury,” said Luca Solca, an analyst at Exane BNP Paribas….