EU ramps up its efforts to stop Chinese online firms selling illegal goods
The EU's executive arm yesterday unveiled a list of grievances against China-owned AliExpress, which has been under investigation since March 2024 under the Digital Services Act – the EU's content moderation rulebook.
In a statement, the European Commission said that AliExpress doesn't adequately moderate the goods sold on its website and fails to 'appropriately enforce' its penalty policy against sellers who repeatedly post illegal content.
Platforms with more than 45 million EU users can face fines of 6pc of global yearly sales
The commission's preliminary findings now put the platform at risk of a fine.
An AliExpress spokesperson said the company is continuing to work closely with the commission and is committed to respecting EU rules. They said they were 'confident that a positive and compliant result will be achieved'.
The commission also said AliExpress has committed to changes to systems for detecting and flagging illegal products – such as medicines and food supplements – tracing sellers and making its data more transparent.
Alibaba is looking for new areas for growth after its core businesses has fallen victim to ongoing US-China tensions.
Company chair Joe Tsai said last month that Asian companies can look for opportunities in Asia or Europe for expansion.
Under the Digital Services Act, online platforms with more than 45 million EU users can face fines of 6pc of their global yearly sales for failing to stamp out illicit products or harmful content.
Besides AliExpress, other major online platforms – including X, Meta, Temu, TikTok and several pornography platforms – are currently being investigated under the sweeping regulation.
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