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EU takes action against AliExpress for DSA compliance issues
EU takes action against AliExpress for DSA compliance issues

Yahoo

time20-06-2025

  • Business
  • Yahoo

EU takes action against AliExpress for DSA compliance issues

The European Commission (EC) has provisionally determined that AliExpress failed to fulfil its duty to evaluate and reduce the risks associated with the spread of unlawful products as required by the Digital Services Act (DSA). The commission is advancing its investigation regarding AliExpress's adherence to the DSA aimed at bolstering online user and consumer protection. The Commission's preliminary conclusions indicate several areas where AliExpress's practices do not align with DSA requirements for Very Large Online Platforms (VLOPs). The platform's risk assessment appears to overlook the limitations of its moderation capabilities, leading to an underestimation of the risk related to the spread of illegal products. AliExpress has reportedly not effectively implemented its sanctions policy against sellers who consistently list illegal items. There are indications of significant shortcomings in AliExpress's proactive content moderation systems, which reduce their effectiveness and leave room for exploitation by unscrupulous sellers. These issues represent a failure to adequately evaluate and address systemic risks associated with the distribution of illegal content, including counterfeit items and products that fail to meet European safety standards. The preliminary findings do not predetermine the final outcome of the investigation. AliExpress now has the opportunity to respond to the EC's concerns. If the EC's initial view is confirmed, it may result in a non-compliance decision, potential fines and an obligation for AliExpress to submit an action plan to remedy the infringement. The formal proceedings to assess AliExpress' adherence to the DSA began on 14 March 2024, focusing on risk management, content moderation, complaint handling, advertising transparency, trader traceability and data access for researchers. EC tech sovereignty, security and democracy executive vice-president Henna Virkkunen stated: 'We have been able to take concrete steps to ensure a high level of safety for EU [European Union] citizens while maintaining a level playing field for platforms and traders in the EU market. This decision serves as an illustration of the commission's expectations when we raise concerns. We welcome AliExpress' commitments towards becoming safer for users, fairer for legitimate traders and a better online platform for all.' The EC has also accepted and made legally binding a series of commitments from AliExpress to address concerns about its transparency on advertising and recommender systems. AliExpress has agreed to a range of commitments to improve the monitoring and detection of illegal products on its platform, such as medicines, food supplements and adult material. These commitments also cover the platform's notice and action mechanism, internal complaint handling system, transparency of advertising and recommender systems, trader traceability and access to public data for researchers. These measures are designed to make information and tools for limiting the spread of illegal content easily accessible. AliExpress has also committed to maintaining an internal monitoring framework, overseen by a dedicated team, to ensure the effectiveness of these commitments and to conduct regular risk assessments. An independent monitoring trustee will report to the EC annually on the implementation of these commitments. "EU takes action against AliExpress for DSA compliance issues" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Amazon asks court to scrap EU tech label, arguing it poses no systemic risks
Amazon asks court to scrap EU tech label, arguing it poses no systemic risks

Time of India

time13-06-2025

  • Business
  • Time of India

Amazon asks court to scrap EU tech label, arguing it poses no systemic risks

HighlightsAmazon has appealed to Europe's General Court to overturn its classification as a very large online platform under the Digital Services Act, arguing that it does not pose systematic risks to users. The Digital Services Act mandates stricter requirements for Big Tech companies, including risk management and independent auditing, to combat illegal and harmful content on their platforms. Amazon contends that risks associated with its marketplace are limited to individual customers and that the VLOP rules are arbitrary and disproportionately applied to online marketplaces. Amazon asked Europe's second-highest court on Thursday to scrap its designation as a platform subject to stricter requirements under landmark EU online content rules, arguing that it poses no systematic risks to its users. The Digital Services Act , which came into force in 2022, requires Big Tech companies to do more to tackle illegal and harmful content on their platforms. The US online retail giant took its grievance to the Luxembourg-based General Court after the European Commission classified it as a very large online platform (VLOP) under the DSA. A VLOP designation requires companies to do more to tackle illegal online content , undertake risk management, conduct external and independent auditing and share data with authorities and researchers. " Online marketplaces like the Amazon Store do not pose systemic risks. Second, the VLOP rules do not and cannot rationally assist in preventing the dissemination of illegal or counterfeit goods," Amazon's lawyer Robert Spano told the court. "The VLOP rules therefore make no sense when applied to online marketplaces," he said. Amazon said any risks are limited to individual customers, not the totality of its users and that even if problematic products exist, widespread exposure is minimal and already dealt with by a number of product safety and compliance laws. "When it comes to marketplaces like the Amazon Store, size does not multiply risk. It is an arbitrary, disproportionate and discriminatory metric," Spano said. The court will rule in the coming months. Meta Platforms , Chinese social media app TikTok and German online retailer Zalando have also challenged the DSA on various grounds.

Amazon asks court to scrap EU tech label, arguing it poses no systemic risks
Amazon asks court to scrap EU tech label, arguing it poses no systemic risks

Time of India

time12-06-2025

  • Business
  • Time of India

Amazon asks court to scrap EU tech label, arguing it poses no systemic risks

Amazon asked Europe's second-highest court on Thursday to scrap its designation as a platform subject to stricter requirements under landmark EU online content rules, arguing that it poses no systematic risks to its users. The Digital Services Act , which came into force in 2022, requires Big Tech companies to do more to tackle illegal and harmful content on their platforms. The US online retail giant took its grievance to the Luxembourg-based General Court after the European Commission classified it as a very large online platform (VLOP) under the DSA. A VLOP designation requires companies to do more to tackle illegal online content, undertake risk management, conduct external and independent auditing and share data with authorities and researchers. " Online marketplaces like the Amazon Store do not pose systemic risks. Second, the VLOP rules do not and cannot rationally assist in preventing the dissemination of illegal or counterfeit goods," Amazon's lawyer Robert Spano told the court. Live Events "The VLOP rules therefore make no sense when applied to online marketplaces," he said. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Amazon said any risks are limited to individual customers, not the totality of its users and that even if problematic products exist, widespread exposure is minimal and already dealt with by a number of product safety and compliance laws. "When it comes to marketplaces like the Amazon Store, size does not multiply risk. It is an arbitrary, disproportionate and discriminatory metric," Spano said. The court will rule in the coming months. Meta Platforms , Chinese social media app TikTok and German online retailer Zalando have also challenged the DSA on various grounds.

Amazon asks court to scrap EU tech label, arguing it poses no systemic risks
Amazon asks court to scrap EU tech label, arguing it poses no systemic risks

CNA

time12-06-2025

  • Business
  • CNA

Amazon asks court to scrap EU tech label, arguing it poses no systemic risks

BRUSSELS : Amazon asked Europe's second-highest court on Thursday to scrap its designation as a platform subject to stricter requirements under landmark EU online content rules, arguing that it poses no systematic risks to its users. The Digital Services Act, which came into force in 2022, requires Big Tech companies to do more to tackle illegal and harmful content on their platforms. The U.S. online retail giant took its grievance to the Luxembourg-based General Court after the European Commission classified it as a very large online platform (VLOP) under the DSA. A VLOP designation requires companies to do more to tackle illegal online content, undertake risk management, conduct external and independent auditing and share data with authorities and researchers. "Online marketplaces like the Amazon Store do not pose systemic risks. Second, the VLOP rules do not and cannot rationally assist in preventing the dissemination of illegal or counterfeit goods," Amazon's lawyer Robert Spano told the court. "The VLOP rules therefore make no sense when applied to online marketplaces," he said. Amazon said any risks are limited to individual customers, not the totality of its users and that even if problematic products exist, widespread exposure is minimal and already dealt with by a number of product safety and compliance laws. "When it comes to marketplaces like the Amazon Store, size does not multiply risk. It is an arbitrary, disproportionate and discriminatory metric," Spano said. The court will rule in the coming months. Meta Platforms, Chinese social media app TikTok and German online retailer Zalando have also challenged the DSA on various grounds. The case is T-367/23 - Amazon EU v Commission.

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