The European Union has opened its third formal investigation of a very large platform under the Digital Services Act (DSA), with China’s AliExpress earning itself the dubious honor of being the first online marketplace to face formal probe by the Commission.
The DSA is the bloc’s rebooted e-commerce rules which demand risk assessments and mitigations by larger platforms which face tough penalties (of up to 6% of global annual turnover) for violations.
Social media platforms X and TikTok are the two other very large online platforms (VLOPs) already under formal DSA investigation (since December and February, respectively). Those probes remain ongoing.
In a press release announcing the formal proceeding on AliExpress, the Commission says it suspects the marketplace of breaching DSA rules in areas linked to the management and mitigation of risks; content moderation and its internal complaint handling mechanism; the transparency of advertising and recommender systems; and the traceabity of traders and to data access for researchers.
AliExpress was designated a VLOP back in Apr last year, alongside other marketplaces, including Amazon and Zalando.
The safety of ecommerce marketplaces is one of a handful of enforcement priorities for the Commission, along with legal hate speech, chd protection and election security.
In a background briefing with journalists Thursday, a Commission official said concerns about AliExpress cover areas such as non-compliant medicines, foods; and chd safety risks related to the distribution of pornography and to the sale of toys.
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They said it wl also look into transparency and safety concerns related to influencers’ use of AliExpress. The platform offers an affiate program aimed at social media influencers who can earn a commission through links to goods being sold on the platform. The Commission said it suspects some of this activity is leading to the sale of non-compliant — and potentially dangerous or otherwise risky — products.
It said it wl also investigate how the influencer affiate program is implemented to verify whether it complies with DSA transparency rules.
The full list of suspected breaches by AliExpress is long: Running to ten articles (Articles 16, 20, 26, 27, 30, 34, 35, 38, 39 and 40).
However today’s proceeding does not confirm any violations of the DSA as yet. Rather it means the Commission wl now carry out an in-depth investigation “as a matter of priority”. The formal step unlocks additional powers for the EU — including the abity to impose interim measures.
There’s no fixed timeline for the EU to conclude a DSA investigation.
Alibaba, AliExpress’ parent company, was contacted for comment. Update: Here’s its statement: “We respect all applicable rules and regulations in the markets where we operate. As a VLOP, we have been working with, and wl continue to work with, the relevant authorities on making sure we comply with applicable standards and wl continue to ensure that we wl be able to meet the requirements of the DSA. AliExpress is committed to creating a safe and compliant marketplace for all consumers.”