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Brussels fines AliExpress 550 million for failing to combat illegal goods sales
🇵🇾 Paraguay /Crime & Justice

Brussels fines AliExpress 550 million for failing to combat illegal goods sales

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Official statement Outcome reported
  • The European Commission has fined AliExpress 550 million euros for failing to effectively combat the sale of illegal goods on its platform.
  • The commission cited insufficient staffing and an ineffective IT system for detecting and removing counterfeit or unsafe products.
  • AliExpress must present a plan by October 20 to correct these practices, facing further evaluation by the commission.

The European Commission has imposed a hefty 550 million euro fine on the Chinese e-commerce giant AliExpress for its inadequate efforts in tackling the sale of illegal products. The commission found that AliExpress failed to "effectively" combat counterfeit goods and items that violate safety regulations on its platform.

According to Brussels, AliExpress lacks sufficient personnel to properly vet the products listed. Furthermore, the commission criticized the platform's IT system, stating it "overestimated" its capacity to detect and remove illicit listings. Even when illegal items were identified, the system reportedly allowed them to remain visible for "several weeks," posing risks to consumers.

overestimated

— Comisión EuropeaDescribing the European Commission's view on AliExpress's IT system's capabilities for detecting illegal products.

The commission also faulted AliExpress for not adequately assessing the risks posed by its algorithms, which continued to offer illegal products to users before their removal. The platform was also accused of failing to enforce its own sanctions regime, allowing sellers of illegal goods to continue operating despite penalties.

several weeks

— Comisión EuropeaIndicating the duration illegal goods remained visible on AliExpress after detection.

Brussels highlighted that AliExpress's controls for detecting problematic goods are easily circumvented. Sellers of illegal items can allegedly misrepresent product categories to benefit from less stringent requirements. The platform's mandatory brand authorization system was deemed "ineffective," as counterfeit sellers could easily bypass it. The commission stressed that the proliferation of counterfeit and unsafe goods is not an unavoidable cost of online shopping but a direct violation of AliExpress's obligations under the Digital Services Act (DSA).

AliExpress has until October 20 to submit a corrective action plan to the European Commission. The commission will then have an additional month to evaluate the plan and establish a "reasonable" timeline for its implementation. This fine is one of three imposed by the commission to date for violations of the DSA.

The proliferation of counterfeit, unsafe toys, dangerous cosmetics, and other illegal and harmful products are not an unavoidable cost of online shopping, but a breach by AliExpress of its obligations under the DSA.

— Henna VirkkunenVice-President of the European Commission responsible for digital policy, explaining the significance of AliExpress's non-compliance with the DSA.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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