AliExpress Pledges Separate Corrective Measures
The European Union (EU) on June 18 (local time) indicated the possibility of imposing a fine on Chinese e-commerce company AliExpress, stating that the company had failed to take adequate measures to prevent the distribution of illegal goods.
The European Commission, the executive branch of the EU, announced, "Following an in-depth investigation into AliExpress, we have reached a preliminary conclusion that the company has violated the Digital Services Act (DSA)." If AliExpress is ultimately found to have violated the DSA, it could face a fine of up to 6% of its global annual revenue.
AliExpress logo. AliExpress
The Commission pointed out that AliExpress did not comply with EU safety regulations and failed to appropriately sanction sellers who repeatedly listed illegal products such as counterfeit goods. Additionally, regarding the risk assessment obligations stipulated in the DSA, the Commission found systematic deficiencies in AliExpress's content moderation system for preventing the spread of illegal goods, and determined that the resources allocated were insufficient, resulting in an underestimation of actual risks.
AliExpress will have the opportunity to review the Commission's preliminary findings and exercise its right to respond before a final decision is made regarding any DSA violations.
On the same day, the Commission also disclosed the corrective measures that AliExpress had pledged to implement during the DSA investigation. AliExpress plans to introduce a system capable of detecting and blocking "hidden links" to counterfeit pharmaceuticals and adult products, and will operate a dedicated compliance team to enforce these corrective actions.
However, the Commission warned that additional fines could be imposed depending on whether these corrective measures are properly implemented.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
