New Delhi, July 2 -- The Chinese tech giant Alibaba will pay $600 million to resolve a dispute with the U.S. government over allegations that the Hangzhou-based firm sold and imported illegal pharmaceuticals, controlled substances, regulated chemicals, and pill-making equipment into the U.S.

Alibaba operates some of the world's largest e-commerce platforms, including Alibaba.com and AliExpress.com.

The U.S. alleges that Alibaba's U.S.-based payment processor, AUS Merchant Services, violated federal law by failing to prevent merchants from selling and importing illegal products into the U.S. through Alibaba.com and AliExpress.com.

Alibaba acknowledges in an agreement with the Justice Department that between January 2016 and December 202...