The EU has raised allegations against AliExpress, a prominent Chinese online marketplace, for allegedly breaching the digital regulations of the bloc. Brussels is intensifying its efforts to regulate internet businesses through significant legislation. Regulators expressed worries in their initial findings about AliExpress’s inadequacy in implementing effective measures to curb the dissemination of unlawful content, such as counterfeit items and unsafe products.
Moreover, Brussels criticized the company for its failure to enforce penalty policies adequately against traders repeatedly involved in posting illegal content. The European Union’s crackdown on Chinese online retailers, particularly regarding low-cost imports, is evident. Over 90% of packages imported into the EU originate from China.
Brussels proposed a €2 levy on small incoming packages to the EU and initiated an inquiry into Shein, an Asian e-commerce platform heavily reliant on a Chinese supply chain. Concerns have been raised about Shein’s potential violation of European consumer protection regulations.
The Digital Services Act mandates prominent online platforms to uphold stricter policing of their platforms, imposing additional responsibilities on major tech entities like Instagram, Google, and TikTok.
According to this groundbreaking legislation, companies failing to control illegal content and disinformation risk penalties amounting to 6% of their global annual revenue. In response to the allegations, AliExpress expressed confidence in resolving any outstanding concerns related to the DSA through ongoing discussions with the European Commission.
The company affirmed its commitment to maintaining a secure and compliant marketplace for consumers in Europe and globally, in adherence to relevant market regulations.
Part of the investigation into AliExpress, initiated last year, was concluded by the commission after the platform made specific commitments. These commitments included enhancing the transparency of advertising systems, facilitating data access for researchers, and establishing a searchable and reliable repository for advertisements.
The European Union’s tech chief, Henna Virkkunen, commended these commitments, emphasizing the importance of ensuring EU citizens’ safety and maintaining a fair playing field for platforms and traders in the EU market.
Furthermore, the commission is currently investigating Temu, another Chinese online marketplace, over concerns related to inadequate measures to restrict the sale of non-compliant products in the EU and prevent potential addiction risks associated with the platform’s design.
