Quote from Alex bobby on June 19, 2025, 6:06 AM

AliExpress Found in Breach of EU’s Digital Services Act for Failing to Combat Illegal Content

The European Commission has formally notified Chinese e-commerce giant AliExpress that it is in breach of the Digital Services Act (DSA)—a landmark EU regulation designed to hold large online platforms accountable for illegal content and harmful products. The platform, owned by Alibaba Group, now faces potential penalties if it fails to address the Commission’s concerns.

The preliminary findings, published on Tuesday, highlight serious shortcomings in AliExpress’s efforts to detect and remove illegal goods, as well as systemic weaknesses in its content moderation systems. These findings mark a critical development in the EU’s broader efforts to rein in the responsibilities of Very Large Online Platforms (VLOPs)—a category under the DSA that includes companies with more than 45 million users in the EU.

A Landmark Warning

The Commission’s probe into AliExpress began in March 2024 and focused on five key areas:

• Risk mitigation
• Content moderation
• Complaint-handling mechanisms
• Transparency in advertising
• Functionality of recommender systems

According to the Commission, AliExpress has underinvested in moderation systems meant to prevent the spread of illegal and harmful products—particularly counterfeit goods and unregulated items like fake medicines or unsafe food supplements.

“The company also fails to appropriately enforce its penalty policy concerning traders that repeatedly post illegal content,” the Commission said in its statement. “Its content moderation systems show systemic failures, making the systems less effective and allowing manipulation by malicious traders.”

Potential Financial Consequences

While the current notice is based on preliminary findings, AliExpress has now been given the opportunity to respond to the Commission’s concerns. Should the EU executive move forward with a final decision confirming the breach, the consequences could be severe. Under the DSA, the Commission has the power to impose fines of up to 6% of a company’s global turnover.

For a global platform like AliExpress, that could amount to hundreds of millions of euros, depending on annual earnings.

Voluntary Commitments Become Binding

Not all findings were negative. The Commission also acknowledged that AliExpress made voluntary commitments to improve in several areas. These commitments—originally proposed during the investigation—have now been made legally binding.

They include improvements in:

• The notice-and-action mechanism, allowing users to report illegal content more easily
• Transparency of advertising, ensuring users can see when content is sponsored or commercial
• Data access for researchers, enabling independent analysis of how the platform functions
• Monitoring systems for illegal products, particularly those that threaten public health or children’s safety

The binding commitments allow the Commission to close those specific parts of the probe, though scrutiny will remain on how effectively AliExpress implements the agreed measures.

AliExpress Under the Microscope

This latest enforcement action makes AliExpress the second-most advanced DSA investigation since the act came into force in late 2023. The most developed case so far has been against X (formerly Twitter), where the Commission also issued preliminary findings related to risk management, content moderation, and deceptive interface design—often referred to as "dark patterns."

Further investigations are still pending into other major platforms including Meta’s Facebook and Instagram, as the EU increases regulatory pressure on companies that dominate digital space in Europe.

The Digital Services Act: A New Era of Accountability

The DSA represents a paradigm shift in how the EU governs online platforms. Platforms classified as Very Large Online Platforms (VLOPs) are subject to the strictest scrutiny due to their wide user base and potential societal impact. These rules are not limited to content but also include transparency, user safety, and algorithmic accountability.

The AliExpress case underscores how the Commission intends to use its new enforcement powers to push global platforms into compliance with European values and consumer protections. It also demonstrates that voluntary efforts alone are no longer enough to satisfy EU regulators.

Looking Ahead

AliExpress now has a window of opportunity to respond to the Commission's findings and adjust its internal policies before a final decision is made. Whether the company can avoid sanctions will depend on its willingness to overhaul its moderation systems, improve enforcement against repeat offenders, and implement robust mechanisms for content oversight.

If not, the case may set a precedent for further fines and enforcement actions under the DSA—sending a clear message to other platforms that non-compliance comes at a cost.

Conclusion

The European Commission's findings against AliExpress mark a pivotal moment in the enforcement of the Digital Services Act, signalling the EU's commitment to holding major online platforms accountable for the spread of illegal content and products. While AliExpress has made some progress through voluntary commitments, its failures in key areas—particularly content moderation and enforcement against repeat offenders—highlight the serious risks posed by inadequate oversight in global e-commerce.

As the investigation progresses, AliExpress faces not only potential financial penalties but also mounting pressure to revamp its systems and align fully with EU standards. This case serves as a powerful reminder to all Very Large Online Platforms: compliance with the DSA is no longer optional, and meaningful, proactive measures are now a legal obligation—not a courtesy.

Meta Description:
The European Commission says AliExpress failed to counter illegal products under EU online platform rules. The Chinese e-commerce giant now faces possible fines of up to 6% of global revenue.