Chinese prosecutors have dropped a sexual assault case against a former employee of the tech giant - Alibaba.
The employee, identified by his surname Wang, was detained by police last month after a female co-worker accused him and a client of sexual assault.
Prosecutors said the man had committed forcible indecency but not a crime.
They have, however, approved the arrest of the client who has been identified by his surname Zhang.
In an 11-page document uploaded onto Alibaba's internal network, the female employee said the attack took place during a business trip to eastern China's Jinan city.
She accused her superiors and human resources of not taking her report seriously, triggering a fierce public backlash against the e-commerce giant.
Wang, along with several other executives, were later fired by Alibaba.
Neither he nor Zhang were able to be reached by Reuters for comment.
Alibaba said in response to the decision by prosecutors that it has a zero-tolerance policy for sexual misconduct.
The company, which was founded by billionaire Jack Ma, is already under pressure from a regulatory crackdown by Chinese authorities.