AliExpress targeted by the European Commission: risks of illegal products, possible fine of up to 6% of turnover
The European Commission on Wednesday, June 18, cleared the way for a hefty fine against Chinese e-commerce giant AliExpress. The Brussels-based executive, the European Union's (EU) digital watchdog, believes that AliExpress "breached its obligation to assess and mitigate the risks associated with the distribution of illegal products," such as counterfeits or items that do not comply with European safety standards.
This prosecution is a first for this subsidiary of the Chinese internet giant Alibaba under the new EU Digital Services Regulation (DSA), which will fully come into force in 2024 to better protect internet users.
But the Commission also highlighted the promised improvements implemented by the platform, which for its part welcomed "a constructive dialogue" .
AliExpress may respond in writing"We remain fully committed to complying with the DSA and implementing our commitments. We are confident that a positive and compliant outcome can be achieved (...) to address all remaining concerns," AliExpress said in a statement. "We have worked closely with the European Commission from the beginning and will continue to do so," the Chinese group promised.
Among the problems that remain to be resolved, the Commission notes in particular that the online distributor underestimates the risks of its moderation system and that it does not "correctly" apply its sanctions policy towards sellers "who repeatedly publish illegal content" .
It also highlights "systemic failures" that make its moderation systems "ineffective and susceptible to circumvention by malicious vendors."
AliExpress will now have access to the file and will be able to respond in writing to the preliminary findings.
AliExpress faces record fine riskIf the Commission's accusation is confirmed, the group could be fined up to 6% of its annual worldwide turnover and placed under increased surveillance until corrective measures are implemented.
A Commission spokesperson, however, reiterated that the aim of the regulation was not to impose fines, but to obtain compliance from companies through dialogue.
The formal indictment announced Wednesday follows an investigation opened by the Commission in March 2024. It comes with a positive assessment of many points raised a year ago, with the platform proposing improvements that were validated by the Commission.
Thus, it notes that the Chinese distributor has responded to its concerns regarding the systems put in place to "monitor and detect illegal products, such as medicines, food supplements or adult content, which may harm the health of users and the well-being of minors."
The reporting mechanism for this content is also satisfactory, as are the complaint handling systems. Brussels also believes that AliExpress now complies with the law regarding transparency of advertising and recommendation systems, seller traceability, and access to its data by researchers.
Progress welcomed by Brussels and consumer associations"Today's measures demonstrate the strength of the Digital Services Act to create a safer online environment," said European Commissioner for Technology Sovereignty Henna Virkkunen, who welcomed "AliExpress's commitments to becoming a safer platform for users."
The European Consumer Organisation also expressed satisfaction with the Commission's enforcement measures. "It is now very important that it monitors AliExpress's compliance with its commitments" and "pursues [the platform] in areas where it remains in breach," commented its director general, Agustin Reyna.
Two other Chinese e-commerce platforms are also still in Brussels' sights. The Commission opened investigations in October and February, respectively, against the retailer Temu and the online clothing retailer Shein.
The World with AFP
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