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The EU is accusing Chinese online marketplace AliExpress of breaching the bloc’s digital rules, as Brussels continues its efforts to utilise landmark legislation to police internet businesses.
In preliminary findings issued on Wednesday, regulators said they were worried about the lack of effective measures from AliExpress to prevent the dissemination of illegal content such as counterfeit goods or unsafe products.
Brussels also accused the company of failing to appropriately enforce its penalty policy concerning traders that repeatedly post illegal content.
The decision comes as the bloc is cracking down on Chinese online retailers, especially when it comes to low-cost imports. More than nine out of 10 packages imported to the EU come from China.
Brussels has suggested a €2 fee on small packages entering the EU. Brussels has also launched an investigation into Shein, the Asian ecommerce platform that relies on a Chinese supply chain, amid concerns the company is violating European consumer protection rules.
The Digital Services Act forces large online platforms to police their platforms more aggressively, with additional obligations for a number of Big Tech groups including Instagram, Google and TikTok.
Under the landmark legislation, companies that fail to curb illegal content and disinformation face penalties of up to 6 per cent of their annual global turnover.
“We are confident that a positive and compliant result will be achieved through continuing our mutual dialogue with the [European] Commission to address any remaining concerns on the DSA,” AliExpress said.
It added it was “committed to providing a safe and compliant marketplace for consumers in Europe and around the world, respecting applicable rules and regulations in the markets where we operate”.
The commission closed another part of the investigation in AliExpress, which was launched last year, as the platform came forward with certain commitments, for example on the transparency of advertising systems, data access for researchers and a searchable and reliable repository for advertisements.
The EU’s tech chief Henna Virkkunen welcomed those commitments. “We have been able to take concrete steps to ensure a high level of safety for EU citizens while maintaining a level playing field for platforms and traders in the EU market,” she said.
The commission is also investigating the Chinese online marketplace Temu over concerns that it does not do enough to limit the sale of non-compliant products in the EU and prevent the risk of addiction to the platform through its design.