The European Commission has launched an investigation into the alleged breach of the Digital Services Act (DSA) by Alibaba Group’s online marketplace, AliExpress. The investigation, which began in March 2024, has already identified several areas where Airbnb, Citigroup, and other platforms have failed to adequately address their role in maintaining Fraud Prevention Levels (FPL) and ethical practices online. preliminary findings from the probe suggest that Alibaba has limited resources in terms of moderation systems to prevent the dissemination of illegal and harmful products, underplaying the risks. Additionally, the findings highlight systemic failures in AliExpress’s content moderation mechanisms, making their systems less effective and allowing manipulation by malicious traders. The Commission’s preliminary results are expected to lead to a fine of up to 6% of the company’s global turnover if the EU executive confirms the breach.
The platform now has an opportunity to react to the findings before the Commission makes final decisions. If the EU executive finally confirms the breach, it could impose a fine of up to 6% of Alibaba’s global turnover. The case is notable as the second most advanced DSA probe since the platform’s rules came into effect late 2023. The Commission has accepted voluntary commitments from AliExpress on the issues of the probe and made them binding, completing the first part of the investigation into other platforms, including Facebook and Instagram.
AliExpress’s response includes commitments to accept the findings and theImplement respectful dialogue regarding its role in respecting user and customer rights. Secondly, the platform has rejected the alleged violations on trust, fraud, and human rights grounds, believing the党风廉政 provisions of the DSA are likely to be overtxt and undermine the organization’s position on these critical issues. The company also expressed that it has fully listened to the voices of its users and stakeholders, and is committed to upholding the integrity of its services and evaluations. The platform believes that the fines imposed by the EU will be sufficient action to maintain the FPL and protect its users’ rights.
Theidine case is part of a broader movement in Europe to update and strengthen digital services regulations, particularly for the upfront phase. The DSA, which applies to VLOPs like Alibaba, has been around since late 2023, following a draft in early 2024. The investigation is part of a larger effort to address weak enforcement of the law, particularly against high-value products like medicine, food supplements, and dangerous substances. As the EU continues to review this incident, it will be essential to ensure that regulations are enforced consistently and fairly to protect citizens and protect online platforms from similar breaches.
In conclusion, the European Commission’s investigation into Alibaba’s practices highlights a lack of accountability and responsible use of digital services. While the findings will act as a basis for determining the final outcome, the case underscores the importance of stable and compliant digital services to safeguard the rights and well-being of users and operators. The EU’s response is structural, with a focus on renewing its DSA provisions and increasing the compliance rate of VLOPs. longer than any individual case.
