EU Launches Formal Investigation into AliExpress Over Alleged Digital Services Act Breaches

The European Commission has intensified its regulatory oversight of global tech platforms, launching a formal investigation into Chinese e-commerce marketplace AliExpress. The probe will scrutinize whether the Alibaba-owned company has violated the Digital Services Act (DSA), a landmark EU law designed to protect consumers from illegal goods, content, and services online.

This action marks one of the most significant enforcement steps under the DSA since it came into full effect. The Commission’s concerns are wide-ranging, focusing on AliExpress’s management and mitigation of systemic risks. Officials will examine the platform’s measures to prevent the circulation of counterfeit goods, fake medicines, and other illegal products. The investigation also covers potential failings in content moderation, the transparency of its recommendation algorithms, and compliance with rules requiring the traceability of traders on its platform.

In a statement, the Commission expressed concerns that AliExpress’s current strategies are insufficient to effectively tackle the dissemination of illicit materials and protect consumers. The DSA mandates that Very Large Online Platforms (VLOPs), a designation AliExpress received in April 2023, conduct rigorous risk assessments and implement robust moderation systems.

If found in breach of the DSA, AliExpress could face severe penalties, including fines of up to 6% of its global annual turnover. This investigation underscores the EU’s commitment to holding all major digital players accountable, regardless of their country of origin. It follows similar probes into platforms like TikTok and X (formerly Twitter), signaling a new era of stringent digital regulation across the bloc that prioritizes user safety and market fairness. The outcome of this case will set a critical precedent for how e-commerce platforms must operate within the European Union.

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