Alibaba vows to appeal US$629m EU fine for breaches of Digital Services Act
The e-commerce firm described the fine as ‘disproportionate’ and said it did not reflect ‘significant, proactive enhancements’ it undertook
“We are surprised by the EU decision and disproportionate fine and we disagree,” the firm said in a statement to the South China Morning Post.
The e-commerce firm vowed to appeal the decision, describing the fine as “disproportionate” and said it did not reflect the “significant, proactive enhancements” it had committed to undertake.
Alibaba had made “many improvements and voluntary commitments” to meet the evolving expectations under the DSA, according to the AliExpress statement.
Earlier Monday, the European Commission said in a statement that AliExpress had failed to “diligently assess risks” and “mitigate identified systemic risks” when it came to illegal, unsafe and counterfeit products spreading on its platform.
The platform also overestimated how effective its systems were at detecting and removing illegal goods and did not employ enough moderators for the workload, the Commission said.
Tests conducted by the Commission showed that illegal products – from counterfeits to unsafe toys and dangerous cosmetics – were recommended or advertised to consumers before being taken down and that “a high volume” of illegal listings continued to circulate despite AliExpress’ moderation efforts.