In a development under the EU’s landmark Digital Services Act (DSA), the European Commission has taken two decisive steps to ensure greater online safety and platform accountability. The actions follow months of scrutiny into the operations of AliExpress, a major global e-commerce platform designated as a Very Large Online Platform (VLOP) under the DSA.
Legally Binding Commitments to Address DSA Concerns
The Commission has formally accepted and rendered legally binding a comprehensive set of commitments proposed by AliExpress. These commitments aim to address a range of concerns raised during the Commission’s ongoing investigation, notably around the platform’s systems for monitoring illegal content, transparency of advertising and recommender algorithms, trader traceability, and user protection.
The commitments offered by AliExpress aim to strengthen the detection and removal of illegal products, such as medicines, food supplements, and adult materials, which are often disseminated through hidden links or affiliate programs. They also seek to enhance the notice-and-action mechanisms available to users and authorities to flag illegal items. In addition, the platform will improve its internal complaint-handling procedures and increase transparency in advertising and recommender systems, including providing public access to an ads repository and allowing users to control how content is recommended to them. The commitments also focus on ensuring that traders operating on the platform can be traced and on facilitating researcher access to relevant public data from the platform.
AliExpress has also pledged to maintain a robust internal monitoring framework to assess and enforce the commitments. A dedicated team will oversee the implementation, and regular reporting will be submitted to an independent Monitoring Trustee. This trustee will, in turn, report annually to the Commission.
With today’s decision, any failure to honour these commitments will constitute a direct breach of the DSA, potentially leading to substantial financial penalties.
Preliminary Findings Indicate Non-Compliance with Risk Mitigation Obligations
In parallel to accepting the commitments, the Commission has notified AliExpress of its preliminary findings indicating a possible breach of Articles 34 and 35 of the DSA. These provisions oblige VLOPs to assess and mitigate systemic risks, particularly the dissemination of illegal content.
According to the Commission, AliExpress’ current risk assessment and mitigation strategies are inadequate because the platform underestimates the risks involved by not taking into account the limited resources allocated to its moderation systems. It also fails to effectively enforce penalties against traders who repeatedly violate the rules. Furthermore, the platform’s content moderation mechanisms have systemic weaknesses that make them vulnerable to manipulation by malicious actors.
These shortcomings raise serious concerns about the platform’s ability to prevent the spread of illegal and unsafe products within the EU market.
Next Steps and Possible Sanctions
AliExpress now has the opportunity to respond to the Commission’s preliminary findings and to review the case file. Should the Commission confirm its initial conclusions, it could issue a formal non-compliance decision, potentially resulting in fines and an obligation for AliExpress to submit an action plan to remedy the violations within a defined timeframe.
A Clear Signal of the DSA’s Enforcement Power
Commenting on the decision, Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, stated:
“The actions taken today show the strength of the Digital Services Act when it comes to creating a safer and fairer online environment. 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. This decision serves as an illustration of the Commission’s expectations when we raise concerns. We welcome AliExpress’ commitments towards becoming safer for users, fairer for legitimate traders, and a better online platform for all.”
Background
The Commission formally opened proceedings against AliExpress on 14 March 2024. The investigation focused on the platform’s handling of risk mitigation, content moderation, internal complaints, advertising transparency, trader traceability, and access to public data. Today’s developments underscore the DSA’s role as a robust regulatory tool for ensuring that digital platforms operating in the EU uphold high standards of user safety and accountability.
