The European Union (EU) has initiated a formal investigation into AliExpress, the online marketplace owned by Alibaba, under the Digital Services Act (DSA). This marks the first time an online marketplace has been subjected to a DSA investigation by the EU.
The DSA, which came into effect on February 17, 2024, is designed to regulate how online platforms handle illegal content, including the sale of dangerous goods and harmful content like hate speech. Platforms with more than 10% of the EU population using them monthly are required to follow specific content moderation regimes, including transparency and risk management obligations.
The EU’s concerns about AliExpress span several areas, including:
- Risk Management and Content Moderation: The EU suspects AliExpress of failing to adequately manage and mitigate risks associated with the sale of illegal or harmful products, such as fake medicines, food, and dietary supplements. It also questions the effectiveness of AliExpress’s content moderation and internal complaint handling mechanisms .
- Advertising Transparency and Recommender Systems: The investigation will scrutinize the transparency of AliExpress’s advertising and its recommender systems. The EU is particularly concerned about the role of influencers in promoting non-compliant products and the lack of transparency in the affiliate program.
- Trader Traceability and Data Access: The EU is examining whether AliExpress provides sufficient traceability of traders and ensures data access for researchers, as required by the DSA.
- Child Safety and Accessibility of Harmful Content: Concerns have been raised about the accessibility of harmful content, including pornographic material, to minors on AliExpress. The EU is investigating whether AliExpress’s mitigation measures are adequate.
The investigation is not a finding of a breach but the opening of a formal investigation into suspected breaches. The EU has the authority to impose interim measures and will gather evidence through various means, including additional information requests, interviews, or inspections. The timeline for concluding the investigation is not fixed and depends on factors like case complexity and cooperation.
Alibaba, AliExpress’s parent company, has responded to the investigation by stating its commitment to complying with all applicable rules and regulations. It has pledged to work with the relevant authorities to ensure compliance with the DSA and to create a safe and compliant marketplace for all consumers .
This investigation follows the EU’s broader efforts to regulate the digital landscape, including probes into other platforms like TikTok and social media companies X and TikTok, which have also been investigated under the DSA for various concerns, including child protection and content moderation.
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