EU accuses China's AliExpress of ‘systemic failure' over illegal goods

The European Commission has accused the online retailer AliExpress of a 'systemic failure' to prevent the sale of illegal and dangerous goods on its platform, as Brussels steps up its case against the Chinese company.
Issuing formal findings of an investigation launched in March last year, EU regulators said on Wednesday that AliExpress was failing to do enough to prevent the sale of counterfeit clothes and dangerous children's toys, among other items.
The company, which claims 104 million monthly users in the EU, did not devote enough resources to content moderation to take down illegal goods on sale on its platform, regulators said.
An EU official said the company – which is owned by Alibaba, the Chinese e-commerce group founded by the Chinese billionaire Jack Ma – had 'underestimated the general risk of the sale of illegal products'.
The official added: 'General measures they have in place to avoid the dissemination of illegal products do not work properly – it shows a systemic failure.'
The European Commission said these were preliminary findings, pending further investigation and responses from AliExpress. If EU officials uphold the verdict, the company can in theory be fined up to 6% of global turnover under the EU's Digital Services Act (DSA).
'Hidden links'
AliExpress has, however, persuaded EU regulators to close aspects of their investigation, by pledging to take action to tackle 'hidden links' that take users to an illegal product via a legitimate one.
The online marketplace promised to develop a system to monitor and detect hidden links to illegal products, such as food supplements and medicines, which have been offered for sale via legitimate items.
Such hidden links were also said to have taken children to pornographic material.
AliExpress also promised greater transparency over its advertising systems and availability of its data to researchers, which Brussels said addressed concerns in these areas.
The European Commission described the commitments as 'legally binding' and said AliExpress could face fines if it failed to follow through.
The investigation comes under the DSA, which is intended to protect people from online harms such as disinformation, illegal content and dangerous products. The act imposes the strictest requirements on the largest companies with more than 45 million users, including Amazon, Google, Meta and X.
AliExpress response
AliExpress said it had 'proactively engaged and closely collaborated with the European Commission throughout this process' and would continue to do so.
'The commission has recognised our committed approach to ensure a high level of consumer protection and transparency through the breadth and depth of these voluntary commitments offered and agreed,' it said.
'We are confident that a positive and compliant result will be achieved through continuing our mutual dialogue with the commission to address any remaining concerns on the DSA.'
The Guardian
Read More
Transatlantic airfares slump as Western Europeans skip US travel

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Irish Independent

9 hours ago

• Irish Independent

Coinbase becomes second major crypto firm to move regulatory hub out of Ireland in 2025

The company has obtained its Markets In Crypto Assets (Mica) licence, a foundational legal instrument for trading across the EU 27 countries, in Luxembourg. In 2023, Coinbase had said that Ireland was chosen from 27 EU countries to be its regulatory and operational hub for Europe, citing a 'stable political environment for technology innovation', 'respected regulators' and being 'a jurisdiction that is familiar and comfortable with both financial services and technology.' Since then, the Irish Central Bank has consistently denigrated crypto as a sector, with Governor Gabriel Makhlouf publicly branding virtual currencies as 'Ponzi schemes'. Coinbase CEO, Brian Armstrong, said in an interview with CNBC that the company has moved to Luxembourg for regulatory reasons. 'Luxembourg is leading the way with its pro-business climate and thoughtful approach to regulation,' he said. Earlier this year, another prominent crypto company also switched its regulatory hub away from Ireland, where it had initially established its European base. Gemini, the cryptocurrency exchange founded by the US billionaire Winklevoss twins, switched its headquarters from Ireland to Malta, citing a better environment for 'innovation among fintech and digital assets'. Senior figures in the Irish cryptocurrency and blockchain industry have expressed concern that a lack of Irish interest in cryptocurrency regulation is driving companies and jobs away. Earlier this year, the Central Bank tendered for consultants to advise it on crypto regulation, after the EU's main Mica rules had already come into force, prompting accusations of being a party-time regulator from prominent Irish crypto figures. In a move to reassure Irish staff of Coinbase's future here, the company's vice president and regional managing director, Daniel Seifert, said that it would soon hire more people for its Dublin office. ADVERTISEMENT "Regarding Ireland, we are happy to announce that Coinbase is doubling down on its commitment to the country and we are imminently adding around 50 jobs to our office,' he said. Coinbase is understood to employ over 100 people at present, having shed almost half of its staff during the tech industry's post-Covid layoffs. 'Our e-money licence through which we service customers across the EU is held in Ireland,' said Mr Seifert. 'I have relocated to Ireland, as CEO of the Irish entity, demonstrating our commitment to scaling international operations and deepening our presence in Europe, one of the most strategic and rapidly evolving crypto markets globally."

The Journal

13 hours ago

• The Journal

Court upholds Spanish government's order to block nearly 66,000 Airbnb listings

A COURT IN Madrid has upheld a decision by the Spanish government to block almost 66,000 Airbnb rental listings that it said violated local rules. Airbnb had appealed the decision by the country's government, which is taking action against short-term rental companies amid a housing affordability crisis. Spain's consumer rights ministry had 'urged' the US company's Irish-based subsidiary to remove 65,935 adverts which it said breached the advertising rules for this type of tourist accommodation. The breaches included failing to list licence numbers, listing the wrong licence number or not specifying who the apartment's owner was. In a statement to The Journal , a spokesperson for Airbnb said the decision by a Superior Court of Madrid 'is a procedural ruling and not a decision on the merits' of the ministry's order, adding that it will take 'longer to decide'. 'Airbnb is confident that the Ministry of Consumer Affairs' actions go against Spanish applicable regulations,' the spokesperson said. They cited a Spanish Supreme Court decision in 2022, which found that the host of a property is responsible for listing information, not the company, and said they always inform hosts that they must comply with all regulations when listing on their platform. The spokesperson said Airbnb has advocated for an EU-wide approach to short-term rental regulations, which will help make rules more consistent across the bloc. They also said that Spain has nearly 4 million vacant homes that make up over 14% of the country's total housing stock, 'almost 30 times more than accommodations exclusively dedicated to tourism'. Advertisement 'The root cause of the affordable housing crisis in Spain is a lack of supply to meet demand. The solution is to build more homes – anything else is a distraction. Spain has seen several large protests that have drawn tens of thousands of people to demand more government action on housing. Alamy Stock Photo Alamy Stock Photo Spain, the world's second most-visited country, hosted a record 94 million tourists in 2024, making the lucrative sector a driver of its buoyant economy. But a housing affordability problem in Spain that is particularly acute in cities such as Madrid and Barcelona has led to growing antagonism against short-term holiday rentals, of which Airbnb is perhaps the best-known and most visible actor. The Spanish government says the two are related: the rise of Airbnb and other short-term rental companies, and rising rents and housing costs. Regional governments in Spain are also tackling the issue. Last year, Barcelona announced a plan to close down all of the 10,000 apartments licensed in the city as short-term rentals by 2028 to safeguard the housing supply for full-time residents. According to the latest figures published by the National Statistics Institute, 368,295 properties were dedicated to tourist accommodation in November 2024. Spain has seen several large protests that have drawn tens of thousands of people to demand more government action on housing. It was one of a number of European countries that saw demonstrations calling for a curb on mass tourism last weekend. Thousands of demonstrators took to the streets in Spain, Italy and Portugal, with some carrying placards and others spraying tourists and hotels with water pistols. With reporting from Press Association Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal

Irish Examiner

14 hours ago

• Irish Examiner

Moneypoint ends coal generation early as ESB shifts focus to renewable energy hub

Coal generation has ended earlier than expected at Moneypoint Power Station in Co Clare. After 40 years, the ESB, which operates the station, announced it has transformed the site into a renewable energy hub as coal generation came to a close. Moneypoint began its transition away from fossil fuels in 2017 with the construction of a 17MW onshore wind farm. In 2021, ESB announced a multi-billion-euro plan to transform the site into one of the country's largest renewable energy hubs, utilising its deep-water port and existing infrastructure. Phase one of this plan was completed in 2022 with a €50 million investment in Ireland's first synchronous compensator — a zero-carbon technology that allows the system to handle increasing amounts of renewable electricity. CLIMATE & SUSTAINABILITY HUB In 2023, ESB and EirGrid signed an agreement to keep Moneypoint available (to generate electricity using oil) from 2025 to 2029. The station will only be required to operate when the electricity system is short on capacity, and only under instruction from EirGrid. Oil generation is less carbon-intensive than coal, and the station is expected to run significantly less often during these four years. On Friday, Minister of State at the department of agriculture, Timmy Dooley, visited the site alongside ESB Chief Executive Paddy Hayes. Speaking about the move, Mr Dooley said: "The early end of coal generation at Moneypoint represents a significant milestone for ESB and is another important step in Ireland's energy transformation. "It is the people of the Mid-West that have made this possible and I am delighted that the site will continue to play a critical role in securing Ireland's electricity supply for a number of years to come." Mr Hayes said: "Moneypoint, the teams working here, and the communities across West Clare have been at the heart of powering Ireland's electricity system for the best part of 40 years so far – and I would like to thank all those who have played a part in that." Ireland's 2030 target under the EU's Effort Sharing Regulation (ESR) is to reduce greenhouse gas emissions by at least 42% by the end of the decade. Climate Minister Darragh O'Brien said: "Today, the next step of the station's journey is beginning as the shift from coal to oil takes place. This is not just a significant move for ESB but also for the country as a whole as Ireland powers forward to deliver the clean energy transition underpinned by a secure electricity system.