The European Commission has launched a formal investigation into AliExpress, the global e-commerce platform operated by Chinese technology giant Alibaba, over the dissemination of illegal content.
The investigation, conducted under the auspices of the Digital Services Act (DSA), marks another step in the EU's efforts to enforce accountability in the digital sphere. DSA is a recent legislative initiative aimed at regulating tech giants' conduct.
(Photo : MARTIN BUREAU/AFP via Getty Images)
EU Launches Probe Into AliExpress' Operations
According to the Commission's statement, the probe will focus on various aspects of AliExpress' operations, including its content moderation practices, internal complaint-handling mechanisms, advertising transparency, and researchers' data access.
These areas are crucial for safeguarding consumer protection and preventing the proliferation of illicit content on online platforms. The commission's decision to launch formal proceedings against AliExpress underscores the gravity of the alleged violations and the need for a thorough investigation.
The inquiry will delve into AliExpress' compliance with specific obligations outlined in the DSA, such as risk assessment, content moderation, and transparency requirements.
Key areas of concern include the platform's purported failure to enforce its terms of service effectively, particularly concerning the sale of products posing health risks and the accessibility of inappropriate content to minors.
Additionally, the investigation will scrutinize AliExpress' measures to prevent intentional manipulation and the dissemination of harmful content through its affiliate program.
Furthermore, the commission will assess AliExpress' adherence to DSA provisions related to user notification mechanisms, internal complaint handling, and data transparency for traders. These aspects are pivotal for ensuring accountability and maintaining the integrity of the platform's operations.
If found guilty of non-compliance with DSA regulations, AliExpress could face significant penalties and enforcement measures. The commission's investigation will prioritize gathering evidence and conducting in-depth assessments to determine the extent of the alleged infringements.
The initiation of formal proceedings empowers the commission to take enforcement actions, including interim measures and non-compliance decisions, to address any identified violations promptly. AliExpress may be required to commit to addressing the issues under investigation.
Read Also: China's AliExpress Expands Presence in Spain, South Korea
AliExpress' Response
AliExpress, designated as a Very Large Online Platform (VLOP) under the DSA, is subject to heightened regulatory scrutiny due to its extensive user base in the EU.
As a VLOP, AliExpress must comply with stringent requirements outlined in the DSA to ensure a safe and compliant marketplace for consumers.
"Consumers' protection, especially for minors, is an essential cornerstone of the Digital Services Act. AliExpress must respect its obligations to mitigate the systemic risks on its platform and apply all safeguard provisions to ensure its services are safe. The Commission will now assess its measures and verify their compliance with our rules," Margrethe Vestager, Executive Vice-President for a Europe Fit for the Digital Age, said in a statement.
In response to the commission's investigation, an AliExpress spokesperson told CNBC about the company's commitment to collaborating with regulatory authorities and upholding applicable standards.
The spokesperson also emphasized AliExpress' dedication to creating a secure marketplace environment conducive to consumer trust and compliance with the DSA's provisions.
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