AliExpress Faces EU Fine for Illegal Products on its Platform

AliExpress Under EU Scrutiny for DSA Violations

The European Union has issued a preliminary finding against AliExpress, the popular Chinese e-retailer, for failing to adequately address the sale of illegal goods on its platform. This action puts the Alibaba-owned company at risk of substantial fines.

The investigation, launched in March 2024, centers on AliExpress’s compliance with the EU’s Digital Services Act (DSA). The DSA mandates that large online marketplaces take proactive steps to identify and remove illegal content and products. The European Commission’s June 18th announcement reveals that AliExpress has fallen short of these requirements.

According to the Commission, AliExpress is deemed to be in breach of its obligations to effectively assess and mitigate risks associated with the distribution of illegal products under the DSA. This preliminary finding signals a serious concern about the platform’s content moderation practices and could lead to significant financial penalties for the company if the violation is confirmed. The outcome of this investigation will be closely watched by other major online marketplaces operating within the EU, underscoring the importance of DSA compliance.

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