The European Commission has initiated an investigation into AliExpress Global based on the Digital Services Act.
According to public sources, EqualOcean has learned that on March 14th, the European Commission announced the initiation of a formal procedure to assess whether AliExpress, a subsidiary of Alibaba, has violated the Digital Services Act (DSA) in the following areas.
The investigation primarily focuses on five aspects: risk management and mitigation, content moderation and internal complaint handling mechanisms, transparency of advertising and recommendation systems, traceability of traders, and data access for researchers.
The European Commission has indicated that the investigation will center on the actual or foreseeable negative impact of AliExpress Global on consumer protection, particularly whether the platform's terms of service have been enforced.
Based on preliminary investigations conducted thus far, including an analysis of the risk assessment report sent by AliExpress Global in August 2023, information disclosed in its transparency report, and its responses to formal information requests from the Commission, the Commission has decided to initiate a formal investigation into AliExpress Global in accordance with the Digital Services Act.
Established in 2010, AliExpress Global is a cross-border e-commerce platform created by Alibaba for international markets. It currently operates in 18 languages and serves over 200 countries and regions worldwide.
The European Commission has stated that on April 25th, 2023, under the EU's Digital Services Act, AliExpress Global was designated as a Very Large Online Platform (VLOP). Prior to this, AliExpress Global announced having 104.3 million monthly active users in the EU. As a VLOP, AliExpress Global must begin complying with a series of obligations outlined in the Digital Services Act four months after its designation.
On December 15th, 2020, the EU unveiled the draft Digital Services Act. This legislation is set to apply to all companies except the smallest ones. The Digital Services Act aims to update and strengthen the EU's regulation of digital service platforms, balancing the freedom of digital service providers with user rights to promote a trustworthy, secure, and innovative digital environment. Companies with fewer than 50 employees and a turnover of less than €10 million (USD 10.8 million) will not fall under the regulation. According to the act, multinational digital companies could face substantial fines for any non-compliance.
Previously, the European Commission initiated investigations into platforms such as X (formerly Twitter) and TikTok. In December 2023, the European Commission launched an investigation into X (formerly Twitter) for insufficient measures to combat misinformation. Additionally, video-sharing service TikTok faced allegations of violating the EU's Digital Services Act in areas such as protection of minors, advertising transparency, data access for researchers, and management of addictive design and harmful content risks. On February 19th, the European Commission announced the commencement of a formal investigation into TikTok's operating company.