The European Union has accused the Chinese e-commerce platform “AliExpress” of violating the digital norms of the alliance. This action is part of Brussels’ ongoing efforts to regulate the actions of online companies through the milestone legislation known as the Digital Services Act (DSA).
On June 18 (Wednesday), the preliminary investigation results released by the regulatory agency showed that “AliExpress” lacks effective measures to prevent the spread of illegal content, such as information on counterfeit goods or unsafe products. At the same time, Brussels also criticized the company for failing to adequately enforce penalties for merchants who repeatedly post illegal content.
This decision comes as the EU increases its crackdown on Chinese online retailers, especially targeting low-priced imported goods. Over 90% of packages imported into the EU come from China. Brussels has proposed imposing a fee of 2 euros on small packages entering the EU.
The milestone legislation, the Digital Services Act (DSA), is the EU’s latest network regulation legislation. Proposed by the European Commission and adopted in 2022, it represents a modern update to adapt the “e-commerce directive” to the digital era.
The aim of the act is to compel internet companies to combat illegal content and misinformation, support transparent advertising, and stop targeting ads based on individuals’ race and religious beliefs. The act came into effect throughout the EU in 2024.
The European Commission also stipulates that 19 major internet technology companies and platforms must undergo compliance supervision under the act before it takes effect. The 19 websites regulated by the act in 2023 include: Wikipedia, AliExpress, Amazon stores, Apple’s App Store, Microsoft Bing, Booking.com, Facebook, Google Play, Google Maps, Google Search, Google Shopping, Instagram, LinkedIn, Pinterest, Snapchat, TikTok, Twitter, YouTube, Zalando.
Under this milestone legislation, companies that fail to effectively curb the spread of illegal content and misinformation could face fines of up to 6% of their global annual turnover.
In response to the regulatory agency’s accusations, AliExpress stated, “We are confident that through ongoing communication with the European Commission, we will ultimately achieve a positive and compliant outcome.” The company also added, “We are committed to providing a safe and compliant marketplace for consumers in Europe and globally, and we comply with relevant laws and regulations in the markets where we operate.”
Another investigation by the EU into AliExpress started last year and has now concluded. This investigation stemmed from commitments made by the platform, such as transparency in the advertising system, granting researchers access to data, and establishing a searchable and reliable ad database. The Commission welcomed these commitments.
Henna Virkkunen, the EU’s tech affairs supervisor, praised these commitments. She stated, “We have taken concrete steps to ensure high safety for EU citizens while maintaining a fair competitive environment for the EU market platforms and merchants.”
The European Commission has also launched an investigation into the Asian e-commerce platform Shein, which relies on the Chinese supply chain, raising concerns that it may violate European consumer protection laws.
Another Chinese e-commerce platform, Temu, is also under investigation, with the EU Commission expressing concerns that it is not doing enough to restrict the sale of non-compliant products in the EU and suspecting that its platform design may pose risks of user addiction.
(This article is based on relevant reports from the Financial Times)