Chinese Retail Giant AliExpress Faces EU Scrutiny Over Systemic Failures

The European Commission has delivered a scathing assessment of Chinese e-commerce behemoth AliExpress, citing “systemic failure” in preventing the distribution of illegal and hazardous merchandise across its digital marketplace.

Brussels’ regulators unveiled their formal investigation findings, initiated in March 2024, highlighting AliExpress’s inadequate measures to curtail the sale of counterfeit apparel and dangerous children’s toys. The platform, boasting 104 million monthly EU users, has demonstrated insufficient resource allocation towards content moderation, leaving its marketplace vulnerable to illegal products.

EU officials emphasised the gravity of the situation, noting AliExpress’s significant underestimation of illegal product proliferation risks. The preliminary findings suggest potential penalties of up to 6% of global turnover under the EU’s Digital Services Act (DSA) framework.

The investigation revealed concerning practices involving “hidden links” directing users from legitimate products to illegal items, including unauthorised food supplements and medicines. More alarmingly, some links reportedly exposed children to inappropriate content.

In response to mounting pressure, AliExpress has pledged to implement enhanced monitoring systems and increase transparency regarding advertising protocols. The European Commission has classified these commitments as legally binding, with non-compliance potentially triggering substantial financial penalties.

The scrutiny intensified following a UK Which? investigation that uncovered dangerous children’s toys on various platforms, including AliExpress. The consumer group’s findings revealed critical safety issues, such as products fragmenting into small pieces and presenting sharp edges hazardous to children.

Market analysts suggest this regulatory intervention signals intensifying oversight of international e-commerce platforms operating within EU jurisdictions, potentially reshaping digital marketplace compliance standards globally.