The imposed fine is the highest the European Commission has levied so far under the European DSA rules for digital services. These require large online platforms to proactively identify risks and take measures against the spread of illegal products.
Insufficient
According to Brussels, AliExpress has failed to sufficiently meet these obligations. The company reportedly fell short in identifying and removing prohibited products and did not properly control fraudulent sellers. As a result, illegal goods remained available to European consumers via the platform.
The Commission has ordered AliExpress to address the identified shortcomings and to prepare an improvement plan. If the matter is resolved to mutual satisfaction, the fine may be suspended or reduced. Brussels has previously done this with American tech companies that did not comply with European rules for online trade. Should the Chinese company fail to adequately comply with the imposed obligations, additional fines may follow.
Promotion
Small Parcels
The fine fits within a broader tightening of European oversight on Chinese webstores and other large online marketplaces that sell millions of products daily to consumers in the European Union. This increased scrutiny is not limited to digital marketplaces themselves. Recently, a new European customs duty of three euros was introduced on small parcels sent from Chinese webstores to EU consumers.
According to the European Commission, millions of small parcels are sent daily into the European Union by mail. Due to the volume, it is almost impossible to inspect every shipment for prohibited, dangerous, or counterfeit products. The new duty aims to make oversight of this goods flow more feasible for Brussels.
Fair Competition
These measures are part of a broader European strategy to strengthen control of rapidly growing e-commerce from third countries. The Commission focuses not only on product safety but also on fair competition for companies that abide by European rules.
With the record fine for AliExpress and the new duty on small postal shipments, Brussels signals its intention to significantly increase enforcement of European rules for online trade. The Commission makes clear that large international webstores bear the same responsibility for the products they offer as other companies operating within the European market.