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Assessing Alibaba’s AliExpress: EU’s Watchful Eye on Consumer Safety and Content Legitimacy

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Assessing Alibaba’s AliExpress: EU’s Watchful Eye on Consumer Safety and Content Legitimacy

The European Commission’s Close Examination

Alibaba Group Holding Limited’s BABA online retail platform, AliExpress, faces scrutiny for reportedly not taking adequate measures to curb the proliferation of illicit products and content.

Unpacking the Investigation Under the Digital Services Act

The European Commission has launched an inquiry to evaluate potential violations of the Digital Services Act (DSA), with a keen focus on risk management, content moderation, advertising transparency, and data accessibility for researchers.

Probing Consumer Protection Measures

Triggered by concerns raised in November regarding consumer safety, this investigation seeks to gather further evidence through interviews, inspections, and data requests, as detailed by the Wall Street Journal.

Maintaining Safe Retail Spaces

Margrethe Vestager, the Executive Vice President of the European Commission, highlighted the sale of products that pose health risks to consumers, such as counterfeit medicines and hazardous food items, particularly threatening to minors.

AliExpress’s Pledge to Compliance

Acknowledging its responsibility, AliExpress has expressed its ongoing collaboration with regulators to adhere to legal standards, underscoring its dedication to upholding a secure and lawful environment for users.

Placing AliExpress in the Digital Services Act Framework

Following its classification as a “major online platform” under the EU’s Digital Services Act, AliExpress boasts over 104.3 million monthly active users within the region.

Citing Past Penalties

In 2023, Alibaba faced a significant penalty of 1 billion yuan from Beijing’s High People’s Court due to monopolistic practices, adding to a $2.75 billion fine imposed by Chinese regulators in 2021 following an antitrust investigation.


Global Regulatory Climate

Simultaneously, major U.S. tech companies are also under scrutiny in the EU for antitrust concerns.


Challenges from Meta Platforms Inc

Meta Platforms Inc META is in disputing the fees enforced under the EU’s Digital Services Act.


Investment Avenues

Investors can access Alibaba through vehicles like Matthews International Funds, Matthews Pacific Tiger Active ETF ASIA, and FlexShares Emerging Markets Quality Low Volatility Index Fund QLVE.


Market Performance

Price Action: BABA shares are trading higher by 0.11% at $73.48 premarket as of the latest check on Friday.


Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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