Brussels, June 18 (EFE).—The European Commission Wednesday warned Chinese e-commerce giant AliExpress that it may face a fine of up to 6 percent of its global turnover for “systemic failures” in preventing the sale of illegal products on its platform.
The commission said the Chinese firm was found breaching the Digital Services Act (DSA) in its content moderation system aimed at preventing the sale of illegal products.
The commission launched its investigation into AliExpress, Alibaba Group Holding’s e-commerce service, in March 2023. It now says the company has not allocated adequate resources to detect illegal goods on its platform and “fails to effectively enforce its sanctions policy” against sellers who repeatedly promote banned items.
AliExpress has the opportunity to respond to the commission’s findings. If its justifications are deemed insufficient, Brussels could impose a fine of up to 6% of the company’s global revenue.
However, the commission has closed part of the case after AliExpress pledged to address several other concerns. According to EU sources, these include “very specific aspects” related to the sale of illegal products.
Among the commitments, AliExpress has vowed to crack down on the use of so-called hidden links—a deceptive tactic that presents illegal or harmful items using the images and descriptions of legitimate products.
The company also said it will increase penalties within its “influencer” program, which allows brands to sell goods through sponsored content.
Additional commitments include enforcing existing policies on the sale of food, health supplements, and adult products.
EU officials said while the measures address specific risks, AliExpress has “underestimated the overall threat of illegal product sales,” and its current moderation system “does not function effectively.”
The platform also agreed to improve seller traceability, enable users to report illegal items, and enhance transparency around advertising. Going forward, all ads will be clearly marked as such and archived in a public repository.
In addition, users will be given the option to opt out of personalized ads, and AliExpress has committed to allowing independent researchers to access data related to its platform, including algorithmic design. EFE
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