China's AliExpress risks fine for breaching EU illegal product rules
Image: AFP
Chinese online giant AliExpress must do more to protect consumers from illegal product sales, the European Commission said Wednesday in an interim finding that could open the way to heavy fines.
While noting some progress, "the Commission preliminarily found AliExpress in breach of its obligation to assess and mitigate risks related to the dissemination of illegal products" under the EU's Digital Services Act (DSA), a statement said.
The EU opened a formal investigation in March 2024 into AliExpress, which is owned by Alibaba, for multiple suspected breaches of DSA rules on countering the spread of illegal goods and content online.
The commission's preliminary findings concluded that "AliExpress fails to appropriately enforce its penalty policy concerning traders that repeatedly post illegal content".
It also highlighted "systemic failures" in AliExpress's moderation systems that expose it to "manipulation by malicious traders", and said the firm's own risk assessments underestimated the dangers linked to illegal products.
Those findings were "in breach of the obligations" that the DSA imposes on very large platforms -- such as AliExpress, Facebook and Instagram -- with more than 45 million monthly European users, the commission said.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
AliExpress now has the right to examine the commission's findings and reply in writing.
If AliExpress is confirmed to be in non-compliance with the DSA, the commission could impose a fine of up to six percent of the firm's global turnover.
The EU has developed a powerful armoury to regulate Big Tech with the milestone DSA and a sister law, the Digital Markets Act, that hits web giants with strict curbs, obligations and oversight on how they do business.
It took action against AliExpress after identifying likely failings to prevent the sale of fake medicines, prevent minors seeing pornography, stop affiliated influencers pushing illegal products, and other issues including data access for researchers.
In its statement Wednesday, the commission said AliExpress had taken a series of legally binding measures to remedy those concerns.
Steps included improvements to its systems for detecting illegal products such as medicines and pornographic material, notably goods spread through hidden links and affiliate programmes.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Eyewitness News
13 hours ago
- Eyewitness News
'Win-win' and still pushing: Reactions to Trump tariffs
TOKYO - Some nations reacted with relief Friday after US President Donald Trump announced tariffs that in some cases were lower than threatened and delayed by a week to 7 August. But others - including Switzerland and chip powerhouse Taiwan - still hope to negotiate lower rates, and uncertainty remains over transshipments and levies on Japanese cars. Trump's announcement does not cover export giant China - currently in negotiations on a trade deal ahead of a 12 August deadline - but here is how other economies reacted: THAILAND: 'MAJOR SUCCESS' The 19% levy for Thailand and Cambodia - fresh from border clashes that killed over 40 people - is a let-off from the threatened 36%. Thailand called it a "major success" and a "win-win approach aimed at preserving Thailand's export base and long-term economic stability". The US trade deficit with Thailand hit $45.6 billion in 2024. Its main exports include machinery, vehicles and auto components. CAMBODIA: 'BEST NEWS' Cambodian Prime Minister Hun Manet called it "the best news for the people and economy of Cambodia to continue to develop the country". The major manufacturer of low-cost clothing for Western brands was initially menaced with a tariff of 40%. Neighbouring Vietnam concluded an agreement with Washington at the beginning of July on a rate reduced to 20%. WHAT ABOUT TRANSSHIPMENTS? But Washington also intends to impose a 40% surcharge on goods transported to the United States via third countries - known as transshipments. This could hurt in particular nations in Southeast Asia, whose production chains are closely linked to China. Many Cambodian factories, for example, are Chinese-owned and the White House has accused the kingdom of allowing Chinese goods to stop over on the way to US markets, skirting steeper rates imposed on Beijing. Experts however are unclear on how Washington will define these "transshipment" goods. TAIWAN: STILL PUSHING Taiwanese President Lai Ching-te called its 20% tariff announced by Trump "temporary... with the possibility of further reductions should an agreement be reached." The US president had threatened to hit the island with a 32% tax and possible duties on the island's huge semiconductors shipments. Soaring demand for Taiwan's AI chips industry has fuelled its trade surplus with Washington, putting it in the crosshairs of Trump's tariff blitz. Washington "needs Taiwan in supporting resilient supply chains, in supporting manufacturing and some high-end technologies," Vice President Hsiao Bi-khim said recently. SWITZERLAND: 'GREAT REGRET' Switzerland expressed "great regret" that it was hit with 39% - up from the threatened 31% - despite its "very constructive position". The levy - more than double the European Union's 15% - appeared to catch the rich Alpine nation off guard. Switzerland ranks sixth in terms of direct investment in the United States, with pharma giants Roche and Novartis announcing major spending plans in recent months. JAPAN: CAR CONFUSION A tariff of 15% agreed last week between Japan and Washington - down from a threatened 25% - is due to be applied from 7 August. But Japanese auto exports were already being hit by a 25% rate, and Tokyo wants to know when this will be lowered too. "We continue to urge the US to take prompt measures to implement the agreement, including lowering tariffs on automobile and auto parts," Prime Minister Shigeru Ishiba said Friday. Confusion also surrounds Trump's claim that Japan - as a "signing bonus" - will invest $550 billion in America, which will recoup 90% of the profits. MALAYSIA: 'POSITIVE OUTCOME' Malaysia also achieved a lower tariff of 19% - down from 25% - which the government called a "positive outcome". "This decision by the United States reflects the strong and enduring economic ties between our two nations," Trade and Industry Minister Zafrul Abdul Aziz said. SRI LANKA: 'HAPPY' Sri Lanka also expressed relief that it will face a 20% hit, a sharp reduction from the 44% originally floated, and expressed hope of a further cut. "We are happy that our competitiveness in exports to the US has been retained," finance ministry official Harshana Suriyapperuma told reporters. Around 40% of Sri Lanka's $5.0 billion of garment exports last year went to the United States.
The Citizen
13 hours ago
- The Citizen
Denza's expansion: Two additional models South Africa could get
For the moment, only one model as been confirmed, however, a likely expansion could potentially bring the brand's flagship MPV and SUV. Its arrival in South Africa taking place next year, BYD-owned Denza will become the 15th Chinese brand to have a presence in the local market. Joining a growing list Debuting in early 2026 with the B5, a rebadged version of its Fangchengbao brand's Bao 5 SUV based on the same platform as the BYD Shark bakkie, the debut of Denza will follow those of its parent company, as well as the current marques from the People's Republic: BAIC; Chery; Dayun; Dongfeng; Foton; GAC; GWM Haval; JAC; Jaecoo; Jetour; LDV; MG; Omoda In addition, further arrivals from Changan and Deepal, as well as the pending return of Geely and JMC will bump the number to 19 before the end of the year. Arriving next A joint venture between BYD and Mercedes-Benz started 15-years ago, but wholly owned by BYD since last year, the global Denza range consists of five products motivated either by a plug-in hybrid (PHEV) or all-electric powertrain. ALSO READ: Speculation over: BYD-owned Denza coming to South Africa In addition to the Fangchengbao Bao 8 possibly making landfall as the Denza B8 to rival the Toyota Land Cruiser Prado and Fortuner, Ford Everest, Mitsubishi Pajero Sport, Isuzu MU-X and Mahindra Scorpio-N as well, in-house Denza options could include the PHEV versions of the D9 MPV and the N9 SUV. As a result of BYD marketing the Seal locally, the Z9 sedan and its Porsche Taycan Sport Turismo-inspired Z9 GT fastback estate are not expected to be offered, with the same likely to apply to the all-electric N7 crossover. D9 The oldest model's in Denza's product range having debuted three years ago, the Kia Carnival-rivalling D9 comes in both PHEV and electric guises, with the former presenting the best option in the case of sales being approved for South Africa. On-sale since the end of last year in Thailand, thus making it available with right-hand-drive, the D9 has measurements of 5 250 mm in overall length, a wheelbase of 3 110 mm, height of 1 920 mm and width of 1 950 mm. The recipient of a mid-life refresh last year in preparation for its Thai debut, the D9, in China, comes with seven seats, however, an ultra-luxurious four-seater, called the Pioneer, can be had in which the centre row makes way for a bulkhead partition with an integrated screen. If approved for South Africa, the D9 will take aim at the Kia Carnival. In addition, a console separates the pair of captain's style chairs, complete with an integrated tablet-style display, storage areas and an upper cooled storage hold. The seats themselves, meanwhile, are electric and feature ventilation, heating and massaging functions. Based on BYD's DM-i platform made specifically for plug-in hybrids, the D9's choice of powerunits comprises two options, both modelled around a turbocharged 1.5-litre petrol engine. Interior is headlined by no less than three displays. Image: Denza China In the first instance, the petrol's 102 kW is backed-up by a 20.3-kWh Blade battery pack powering a single 170 kW electric motor. Combined, the system produces 221 kW and allows for an all-electric range of 103 km based on China's CLTC measurements. Unofficially called the 'long range' option, the second variant involves a 40-kWh battery with the same electric motor and outputs, but an EV-only range of 200 km. Top-spec Pioneer comes standard with four seats and a massive rear display integrated into a partition behind the front seats. Image: Denza China Combined with the petrol engine, the 'long range' has a claimed distance of 1 050 km versus the 'standard's' 970 km. Serving as the range's flagship, the all-wheel-drive D9 adds a second 45 kW electric motor to the front axle for a total output of 299 kW. The claimed electric range is 180 km and the combined, 980 km. Pricing in China kicks-off at 339 800 yuan, which amounts to R852 594 when directly converted. N9 Revealed as the end of last year as its flagship SUV, the N9 not only serves as Denza's flagship SUV, but also its most powerful plug-in hybrid product. Utilising a 2-2-2 seating arrangement, in addition to being inclusive of BYD's latest LiDAR system, the N9 rides on its parent company's latest e-Platform 3.0 with dimensions of 5 258 mm in length, a wheelbase of 3 125 mm, width of 2 030 mm and height of 1 830 mm. Reportedly equipped with a crab walking function as well as a tank turn-style, up front, N9 combines BYD's 2.0-litre turbocharged petrol engine with a 46.9-kWh Blade battery powering no less than electric motors. In total, this amounts to 680 kW, a reported top speed of 230 km/h, according to and an electric-only range of 202 km. The combined is 1 302 km. On the spec front, and depending on the trim level, the N9 sports a Head-Up Display projected onto the windscreen, a 26-speaker sound system, a BMW 7 Series-style 17.3-inch flip-down screen, refrigerated second-row centre console, a 3.2 m3 panoramic glass roof, electric, cooled, heated and massaging second-row, and Nappa leather upholstery. As standard, Denza has fitted the N9 with three displays; a 13.2-inch instrument cluster, a 17.3-inch infotainment and a 13.2-inch on the passenger side. For the moment, neither the mentioned models have received approval and as mentioned, expect final confirmation to only emerge at the end of the year or before Denza's official product launch next year. NOW READ: What next from BYD? Three more products coming to South Africa
IOL News
14 hours ago
- IOL News
Strategies for South African SMEs to cope with Trump's tariff challenges
With the implementation of Trump's 30% tariffs, South African SMEs face significant challenges that threaten their margins. Experts urge local businesses to act swiftly and strategically to adapt to an uncertain economic landscape. Image: File With US President Donald Trump's 30% tariffs having come into effect, South African small and medium-sized enterprises (SMEs) have been bracing for the knock-on impact across supply chains, input costs, and consumer spending. While global headlines focused on Washington, the EU, Canada, and Beijing, experts said local businesses needed to act quickly to protect margins and plan for uncertainty. Thomas McKinnon, chief growth officer at SME services provider Lula, said businesses had to be proactive. "If your product offered exceptional quality, niche appeal, or a distinct competitive advantage, demand might have persisted even with higher tariffs," said McKinnon. From a cash flow perspective, every cent counts. 'Now is the time to look for any big or small ways in which you can streamline your operations, reduce waste, and negotiate better terms with suppliers. The tariffs will have a knock-on effect that we will more than likely see across the board and SMEs need to be ready and prepared,' said McKinnon. Consumers were already feeling the pinch, especially after Eskom's latest electricity tariff hike. McKinnon said businesses might have had to absorb some of the costs to stay competitive, making internal cost-cutting vital. He also urged SMEs to review their forecasts and cash flow closely. "Consider short-term funding options to bridge any potential cash flow gaps during this transition period,' McKinnon said. "Having agile financial solutions in place can provide a crucial buffer as SMEs adapt to the new economic landscape,' he added. Cornelius Coetzee, South Africa country director at cross-border payments company Verto, agreed that a longer-term view was essential. 'This moment necessitated a strategic, long-term vision rather than short-sighted, defensive measures,' said Coetzee. 'The potential implementation of broad tariffs would represent a significant misstep, carrying the considerable risk of triggering a detrimental chain reaction,' he said. Coetzee added that among the spillover effects were increased costs for consumers, severe disruptions to manufacturing supply chains, and a substantial blow to the country's vital export industries. 'Such a policy would, in effect, penalize the very innovation and efficiency that are essential for South Africa's economic prosperity,' he said. Goitseona Raseroka, supply chain lead for Accenture Africa, warned that global trade shifts were already reaching South Africa. 'Tariffs are climbing again, fast, and hard. Our research shows that the average US tariff rate has risen from around 2.4% at the end of 2024 to 29% today. That is the highest level in over a century," she said. While most of the attention was on the US and China, the impact is widespread. 'When tariffs rise in the United States or Europe, the cost of goods increases across supply chains. Components become more expensive. Shipping becomes unpredictable. And somewhere down the line, the cost shows up on South African shelves,' said Raseroka. Accenture estimated that for American households, this tariff shock could add the equivalent of R40 000 per year in extra costs. 'Now imagine what that kind of inflationary pressure could mean for South African consumers,' Raseroka said. Raseroka added the unpredictability was more troubling than the costs. 'These tariffs are not being introduced in a slow and considered manner. They arrive fast, they shift quickly, and they often come with little warning. One month a sector is stable, the next it is caught in a trade dispute,' she said. 'The smart move is not to panic, but to prepare,' said Raseroka. 'Resilience has become the new currency in global trade. It is not about reacting to the next tariff hike, it is about building the kind of systems and strategies that can adapt to multiple futures. We need to move from hoping things will settle to actively preparing for the fact that they might not,' she added. Raseroka said SMEs needed to know their margins, diversify suppliers, consider local sourcing where possible, invest in digital tools for real-time visibility, and train teams in scenario modelling. 'South African businesses have navigated through currency shocks, power cuts, policy uncertainty and commodity price swings. We are used to volatility. What we need now is to take that resilience and turn it into a forward-looking strength,' Raseroka said. IOL
