European Commission Investigates AliExpress

Fri Mar 15 2024
Julie Young (604 articles)
European Commission Investigates AliExpress

Alibaba, a Chinese digital behemoth, owns the e-commerce platform AliExpress. The European Commission has begun investigating the firm on allegations that it isn’t doing enough to stop the spread of illicit goods and content on the internet.

The European Union’s executive arm, the commission, announced Thursday that it will investigate AliExpress for potential breaches of the Digital Services Act. The areas that could be violated include risk management, content moderation, researcher data access, advertiser and recommender system transparency, and advertising and recommender system transparency.

More information about AliExpress’s efforts to safeguard online shoppers was requested by the commission in November.

The commission stated on Thursday that it will continue to collect evidence, such as by conducting interviews, inspections, and additional requests for information, after the formal commencement of proceedings.

According to X, the probe would specifically “check whether AliExpress may have failed to prohibit selling of risky products for consumers’ health (i.e. fake medicines, food), especially for minors,” as stated by European Commission EVP Margrethe Vestager.

On Friday, AliExpress announced that it has been collaborating with the proper authorities to guarantee compliance with all regulations.

“AliExpress is dedicated to building a secure and lawful marketplace for every customer,” stated a representative of the company in an email reply.

After declaring 104.3 million EU users in 2023, AliExpress was classified as a “very large online platform” under the EU’s Digital Services Act. Several regulations outlined in the new law required AliExpress to begin complying with four months following its designation.

Julie Young

Julie Young

Julie Young is a Senior Market Reporter and Analyst. She has been covering stock markets for many years.