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The government will draft the new rules to formulate clear rights and responsibilities for all parties in the online retail space and to govern the entrance and exit of third-party transaction players, Shen Danyang, a Ministry of Commerce spokesman, was quoted by Xinhua as saying at a news conference. Earlier in the week, Alibaba Group said it would invest 1.8 billion yuan to aid the development of small-medium-enterprises on Taobao Mall. The move came after days of acrimonious online protests led by Taobao Mall small business owners who complained that Taobao Mall's new fees for 2012 were too high. Shen said the impetus for the new regulations were the events over Taobao Mall that had revealed weaknesses of the legal framework surrounding e-commerce. Alibaba Group, which owns Taobao Mall, Taobao, Etao and Alibaba.com, is about 40 percent owned by Yahoo Inc. Taobao Mall had 32.8 percent of China's 54.2 billion yuan B2C online marketplace in the second-quarter, according to data from Analysys International. 360buy, Taobao Mall's nearest rival, had 12.4 percent of the market. (Reporting by Melanie Lee; Editing by Jacqueline Wong) Technology Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?) 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