E-commerce giant Alibaba has pledged to do more to stop sales of counterfeit goods following a public dispute with a Chinese regulator that accused it of failing to protect consumers.

Alibaba founder Jack Ma and the director of China's State Administration of Industry and Commerce met Friday and agreed to jointly combat online sales of fake goods, the agency said.

A report Wednesday by the agency accused Alibaba of allowing sales of counterfeits on its Taobao e-commerce platforms.

Alibaba said it was not to blame. But the value of its U.S.-traded shares fell, putting pressure on Alibaba to end the dispute.