EU Commission probes Alibaba over illegal product distribution fears
15 March 2024 15:23
The European Commission has initiated an investigation into Alibaba, the Chinese conglomerate that owns the online marketplace AliExpress. The probe is due to concerns over the potential distribution of illegal products through the store.
The investigation aims to determine whether AliExpress is involved in disseminating illegal products, like counterfeit medicines and ineffective dietary supplements.
This move stems from the Digital Services Act (DSA), empowering the EC to mandate companies to actively combat illegal and harmful content and practices on their platforms.
AliExpress's response
In its defense, AliExpress stated it complies with all appropriate laws and regulations in its operational markets.
"We have and will maintain cooperation with the relevant authorities to ensure our compliance with existing standards. We are committed to fulfilling the DSA's requirements. AliExpress is dedicated to providing a safe and lawful marketplace for all consumers," – the company expressed in a statement reported by Reuters.
AliExpress could face a fine amounting to up to 6% of its worldwide turnover if the European Commission concludes the company has breached DSA regulations.
On Thursday, the Commission also approached Bing, Google, Facebook, Instagram, Snapchat, TikTok, and X for information regarding their employment of artificial intelligence.
The DSA, often referred to as the 'internet constitution'
As of 17 February 2024, the DSA act, dubbed the 'internet constitution', came into effect to enhance consumer protection online. This legislation introduces a novel category of online platform, specifically designed to encompass entities primarily engaged in facilitating users' ability to store and share information. This category principally includes social networking sites, such as Facebook, Instagram, and TikTok.
Under new obligations, major online platforms are required to develop plans subject to audit for mitigating risks associated with their activities (like misinformation, electoral interference, cyberbullying, and others), share operational data with researchers and government bodies, and implement options allowing users to opt-out of targeted advertising – the European Commission detailed.
