In response to heightened scrutiny by the European Union (EU), Chinese e-commerce platform AliExpress has announced enhanced measures to ensure compliance with the bloc’s regulations. This move comes as the EU intensifies its focus on rapidly expanding online platforms like AliExpress, Temu, and Shein, all of which offer inexpensive products manufactured in China to the EU market duty-free. This is due to a waiver on low-value e-commerce packages, a privilege now under review.
AliExpress, which operates under the umbrella of Alibaba and sells products in over 200 countries, has been under the EU Commission’s microscope since March 2024. The company acquiesced to legally binding commitments in June the same year, promising to strengthen its regulatory oversight.
However, a high-profile incident in November, in which AliExpress was found to be selling inappropriate dolls, led to the platform banning the China-based seller responsible for the products.
Eric Pelletier, Alibaba’s head of international government affairs, assured European lawmakers that AliExpress is taking significant steps to ensure compliance with the bloc’s regulations. He announced plans to decrease the visibility of adult products by default, and acknowledged that further work was needed in several areas. These include preventing the relisting of illegal products, strengthening penalties, and expediting the removal of non-compliant sellers.
Christel Schaldemose, an EU lawmaker and lead rapporteur on the Digital Services Act, expressed skepticism about the effectiveness of AliExpress’s systems. Schaldemose underscored safety as her main concern, but also highlighted the issue of unfair competition faced by companies adhering to EU regulations.
The number of low-value e-commerce packages entering the EU saw a 26% increase last year, reaching 5.8 billion. In an attempt to level the playing field with domestic retailers, the bloc plans to introduce fees on these shipments.
What measures is AliExpress taking to strengthen its regulatory compliance in the EU?
AliExpress has committed to enhancing its controls, including decreasing the visibility of adult products by default, preventing the relisting of illegal items, strengthening penalties, and expediting the removal of non-compliant sellers.
Why is the EU increasing its scrutiny of online platforms like AliExpress?
The EU is concerned about safety issues, the sale of counterfeit items, and unfair competition towards companies that comply with the bloc’s rules.
What is the EU’s plan regarding low-value e-commerce packages?
The EU plans to introduce fees on these shipments to promote fair competition with domestic retailers.
