The European Commission announced today that it has fined Chinese company Ali Express 550 million euros for failing to reduce the risk of selling illegal, unsafe and counterfeit products in e-commerce.
The Commission's statement says that Ali Express was fined for violating the provisions of the Digital Services Act (DSA) because it failed to adequately assess whether it had enough employees to control the products sold on its online platform and because its recommendation system first offered illegal products to users, which it only later withdrew.
The commission alleged that the company's system for detecting illegal products was not working properly, that the company had not properly enforced its rules on punishing traders who sold illegal products, and had failed to prevent the sale of counterfeit products.
But Express has until October 20th of this year to submit an action plan to correct the shortcomings to the Commission.
The European Union Digital Services Act represents a comprehensive legal framework for accountability in digital services, regulation of digital content and transparency of digital platforms in the Union.
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