European Commission Accuses AliExpress of Systemic Failures in Preventing Illegal Sales
The European Commission has launched a formal investigation against the online retailer AliExpress, accusing it of a systemic failure to prevent the sale of illegal and dangerous goods on its platform. This investigation, which began in March of last year, has revealed significant concerns regarding the sale of counterfeit products, including clothing and hazardous children's toys.
EU regulators have stated that AliExpress, which boasts 104 million monthly users in Europe, is not allocating sufficient resources for content moderation. As a result, illegal goods remain available for purchase, prompting an EU official to declare that the company has underestimated the risks associated with these products.
"General measures they have in place to avoid the dissemination of illegal products do not work properly; it shows a systemic failure," the official indicated. These preliminary findings may lead to substantial consequences for AliExpress, as the company could face fines of up to 6% of its global turnover under the EU's Digital Services Act (DSA) if the findings are upheld.
In response to the investigation, AliExpress has managed to convince EU regulators to close certain aspects of their inquiry by committing to enhance its efforts in combating hidden links. These links can lead users from legitimate products to illegal items, such as unauthorized food supplements and medicines. Concerns have also been raised about links that direct children to pornographic content.
The online marketplace has pledged to develop a system for monitoring and detecting these hidden links, in addition to improving transparency concerning its advertising systems. The European Commission has categorized these commitments as legally binding and warned that failure to adhere to these promises could result in penalties.
The DSA aims to protect internet users from online dangers, including disinformation, illegal content, and unsafe products. This regulation imposes stringent requirements on the largest tech companies, including Amazon, Google, Meta, and AliExpress, which serves more than 45 million users.
AliExpress has expressed its intention to cooperate with the European Commission throughout this process, highlighting its proactive engagement and commitment to consumer protection. "The commission has recognized our committed approach to ensuring a high level of consumer protection and transparency through the breadth and depth of these voluntary commitments," a spokesperson for AliExpress remarked. They expressed optimism that a positive outcome will be achieved by maintaining an open dialogue with the commission to resolve any outstanding concerns regarding the DSA.
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