European Commission investigates AliExpress for illegal sales

The European Commission has initiated an investigation into Alibaba, the Chinese conglomerate behind the online retailer AliExpress, due to concerns over the potential sale of illegal products through the platform.

This inquiry focuses on determining whether AliExpress has been distributing illegal items, including counterfeit medications and ineffective dietary supplements.

This move stems from the powers vested in the EC by the Digital Services Act (DSA), which mandates that companies actively work to eliminate illegal and harmful content and activities on their platforms.

In response to the investigation, AliExpress has affirmed its commitment to compliance, stating that it follows all relevant laws and regulations in the markets it serves.

"We have and will continue to collaborate with the appropriate authorities to ensure our compliance with established standards. We are committed to fulfilling the requirements of the DSA and strive to maintain a safe and lawful marketplace for all consumers," stated the company in comments reported by Reuters.

AliExpress could face a penalty amounting to up to 6% of its global turnover should it be found in violation of DSA regulations.

The Commission, on Thursday, also made inquiries about the use of artificial intelligence by several tech giants, including Bing, Google, Facebook, Instagram, Snapchat, TikTok, and X.

On February 17, 2024, the Digital Services Act or the 'internet constitution,' came into effect. It aims to enhance consumer protection online by introducing a new definition for an online platform. These are identified as entities primarily facilitating users in storing and sharing information, significantly implicating social networks like Facebook, Instagram, and TikTok.

Under this act, major online platforms are now obliged to draft and undergo audits for risk mitigation plans concerning their operations (targeting misinformation, election interference, cyber violence, etc.), provide operational data to researchers and governmental bodies, and implement options that allow users to opt-out of targeted advertising, as informed by the European Commission.