EU Targets China's E-commerce Giants

The European Union is intensifying its crackdown on Chinese e-commerce giants, with Aliexpress becoming the latest target. The EU has fined the company 550 million euros for its failure to adequately prevent the sale of illegal, unsafe, and counterfeit products on its platform. This penalty marks the largest fine ever issued by the EU Commission for violations of its online trading regulations.

EU Commissioner for Digital Issues, Henna Virkkunen, stated that numerous counterfeit items, unsafe toys, and dangerous cosmetics remained available online for extended periods. She noted that these products continued to be advertised and recommended even after it was known they did not meet EU standards. This lack of oversight has led to significant financial penalties for Aliexpress.

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There were many counterfeit products, unsafe toys and dangerous cosmetics that remained online for a very long time.

The fine against Aliexpress follows similar actions against other Chinese platforms. Just two months prior, Temu was fined over 2.2 billion Swedish kronor for deceptive marketing practices, unauthorized use of cookies, and failing to disclose certain plastic content in its products. Additionally, a surcharge of approximately 33 kronor was recently imposed on all small packages from foreign e-commerce giants, a measure clearly aimed at Chinese low-cost retailers like Shein and Temu.

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Products were still recommended and advertised on the platform... even after it was already known that they did not meet the standard.

The EU Commission, including Virkkunen, explained that this surcharge aims to curb the influx of cheap imports from China, which create unfair competition for European businesses. Shein is also facing increased scrutiny following revelations that weapons and sex dolls resembling children were available for purchase on its platform, a matter now under review by EU legal experts.

Virkkunen, who has been in her role for about 18 months, was recently recognized by Time Magazine as one of the world's 100 most influential people, highlighting the growing importance of her portfolio in the digital trade landscape. Her role in enforcing the EU's digital regulations is seen as crucial in navigating the complexities of global online commerce.

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The fee would, among other things, dampen the flow of cheap imported goods from China, which create unfair competition for shops in Europe.