The European Commission has imposed a fine of EUR 550 million on the AliExpress platform for failing to comply with its obligations under the Digital Services Act (DSA), particularly with regard to the assessment and mitigation of risks associated with the sale of illegal, unsafe and counterfeit products through the platform.
With regard to the protection of intellectual property rights, the European Commission specifically pointed to shortcomings in the systems intended to prevent the sale of counterfeit products. It found that the mechanisms for verifying brand authorization had not functioned satisfactorily and that sellers had been able to circumvent the control mechanisms, thereby allowing counterfeit goods to remain available to consumers.
Among other things, the Commission emphasized that the sale of counterfeit products poses risks not only to consumers, but also to intellectual property right holders, as it creates unfair competition for businesses that invest in development, design, safety and innovation.
The European Commission ordered AliExpress to take measures to remedy the identified shortcomings and to submit an action plan setting out measures to improve its risk assessment and risk management systems.
This decision represents a significant step in the enforcement of the Digital Services Act and in strengthening the accountability of large online platforms, including by improving the protection of intellectual property rights and combating the sale of counterfeit goods in the digital environment.
More information is available in the European Commission’s announcement at the following link.