EU Commission investigates AliExpress for potential breach of EU digital rulebook
The European Commission announced on Thursday (14 March) it is investigating whether online commerce site AliExpress violated the EU’s Digital Services Act (DSA).
The European Commission said it will look at possible lapses in risk management, content moderation, complaint handling, advertising transparency, recommender systems, trader traceability, and data access.
AliExpress, owned and operated by Chinese tech giant Alibaba, is the second Chinese-owned platform after TikTok to be investigated for violations of the DSA.
“This is not a finding of a breach. This is the opening of a formal investigation into a suspected breach,” a Commission representative said on Thursday during a press briefing.
The Digital Services Act (DSA), which entered into force on 17 February for all platforms operating in the EU, is a horizontal legislation regulating how online actors should deal with illegal content online, like selling or purchasing dangerous goods, but also harmful but legal content like hate speech.
Under the DSA, online platforms used by more than 10% of the EU population monthly, meaning 45 million users per month, must follow a specific regime for content moderation.
According to its rules, such platforms have a ‘systemic risk’ for society, hence they must follow a specific regime of content moderation, including transparency and risk management obligations.
Last year, the EU executive announced the first batch of very large online platforms (VLOPs), and very large search engines (VLOSEs), which have been updated since then.
AliExpress was one of the first companies to be named in the Commission’s list of VLOPs. The website most recently reported 104 million users in Europe.
“We respect all applicable rules and regulations in the markets where we operate. As a VLOP, we have been working with, and will continue to work with, the relevant authorities on making sure we comply with applicable standards and will continue to ensure that we will be able to meet the requirements of the DSA,” Alibaba told Euractiv.
“AliExpress is committed to creating a safe and compliant marketplace for all consumers,” the company added.
EU Commission opens formal investigation into TikTok, focused on child protection
The European Commission opened formal proceedings against TikTok under the Digital Services Act on Monday (19 February), due to possible breaches in several areas, including child protection.
Barrage of concerns
The investigation will scrutinise the company’s efforts in combatting the spread of illegal or harmful content and products, such as fake medicines, and the role of influencers in such promotion.
AliExpress runs an Affiliate Programme which allows influencers on other social media sites to sell AliExpress goods.
The Commission suspects “that some of these influencer actions lead to non-compliant products and lack transparency.”
“We also have concerns that content, in particular some elements of pornographic material, are easily accessible on AliExpress and that their mitigation measures are not adequately effective there,” the Commission representative said.
“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,” Margrethe Vestager, Executive Vice-President for a Europe Fit for the Digital Age also said.
As of 19 February, the social media platform TikTok is also being investigated for possibly breaching the DSA in several areas, including child protection.
The Chinese retailers’ transparency regarding recommendation algorithms will also be under the microscope, including their provision of a recommender system that does not profile users, along with establishing a searchable and trustworthy advertisement repository.
The investigation will also examine the intentional manipulation of users through concealed links and whether it meets requirements for reporting illegal content, handling complaints, advertisement repositories, and data accessibility for researchers.
Next steps
There’s no specific timeframe for concluding investigations under the DSA, as it depends on factors like case complexity and cooperation.
The Commission will gather evidence through various means such as additional information requests, interviews, or inspections, allowing the institution to take enforcement steps like interim measures or accepting commitments from AliExpress to address possible infringements.
The Commission opened its formal investigation following its analysis of AliExpress’s transparency report in August 2023 and its responses to the Commission’s official requests for information from 6 November 2023 and 18 January 2024.
Three pornography sites sue EU over digital rulebook compliance
The three pornography websites included on the Digital Services Act’s very large online platforms list are suing the EU over their new obligations, Euractiv learned on Thursday (7 March).
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