According to the Korea Times, an EU investigation found toys and cosmetics that did not meet safety standards, as well as counterfeit goods and remaining accessible listings for weeks. BRUXELLES — The European Union has fined Chinese e-commerce giant AliExpress $550 million for allowing illegal products to be sold on its platform. The fine was announced Monday and marks the largest sanction applied so far under the Digital Services Act, the EU's digital services law.

The probe looked at items in the catalog that didn't comply with environmental or safety standards set by the union. An investigation launched in March 2024 examined procedures used by online seller to identify and remove illicit offers. The evaluation wasn't just about products listed in the catalog; authorities also contested AliExpress' effectiveness in controlling offerings.

They claimed the company had overestimated its systems' ability to detect and eliminate illicit entries. According to reports, in some cases, merchandise already identified as illicit would remain available for several weeks before being removed. Before removal, these products could appear among user recommendations.

Circumstances indicate a lack of coordination between verification activities and automatic recommendation mechanisms. Offers could continue to gain visibility while still accessible on the platform. A high-ranking EU official cited in the report said millions of products could reappear after cancellation.

No source specified quantification of removed articles nor time frame referenced this estimate. Brussels signaled that operators involved in selling illicit merchandise were able to maintain active accounts. Another chapter of the investigation touched upon counterfeiting.

The European Union found inadequate measures taken by AliExpress to stop the sale of fake goods. Specifically, the mandatory authorization system for trademarks was deemed ineffective and staffed insufficiently. These weaknesses allowed counterfeiters to easily evade checks. 'Risks must be systematically identified and addressed,' Henna Virkkunen, EU's technology policy chief declared.

In a note cited from Korea Times, Virkkunen added that the union intends applying this criterion to AliExpress and asked the platform to address shortcomings reported. The fine targets central market for the company. According to an EU official quoted in article, the union represents largest e-commerce market for AliExpress.

However, no data provided on revenue generated in area, number of users or incidence of sales compared to overall activity of group. The Digital Services Act requires digital platforms to consider risks associated with their services as well as adopt measures limiting them. During probe on AliExpress, attention focused on safety and legality of offered products, contrast to counterfeiting and ability to prevent offers already cancelled from returning visibility.

This fine marks significant step in application of EU rules to large online platforms. Elements covered both prevention through verification of sellers & products as well as response after discovering violation. Permanence online listings, possible recommendation and reappearances of entries considered part same control problem.

No reply from AliExpress to contestations nor details given on legal actions against decision. Neither clarification given on time frame within which society must implement requested interventions. Remaining unclear how platform will strengthen systems detecting, enhance product verification & stop irregular vendors operating.