Azernews.Az

By Alimat Aliyeva

The European Commission is investigating AliExpress and Shein over allegations such as the sale of illegal products and the potentially addictive design of their platforms, Azernews reports.

The European Union is taking bold measures against Chinese e-commerce giants. Shein, AliExpress, and Temu are at risk of facing multimillion-dollar fines under the Digital Services Act for a range of violations. These include the sale of illegal goods — such as medicines made available to minors — and issues related to the surveillance of sellers on these platforms.

At a European Parliament meeting last Wednesday, the European Commission shared updates on ongoing investigations into AliExpress and Shein, both of which are in full swing, as reported by the Spanish newspaper ABC. The investigation into Temu, however, is still at a preliminary stage, though Commission officials emphasize that it is being treated with "the highest priority."

The Commission accuses Shein of violations similar to those levied against AliExpress: the sale of illegal products, flaws in notification systems, and concerns about the addictive nature of the platform's design. These issues center around how the interface is structured to encourage prolonged usage — a key concern for regulators monitoring online platforms. If Shein proves that it has taken sufficient corrective measures, the investigation could be partially closed, transitioning into a monitoring phase. However, if the company fails to meet the Commission's expectations, it could face sanctions, with fines potentially reaching up to 4% of Shein’s annual turnover, which is estimated to be around $50 billion.

This scrutiny of Shein, AliExpress, and Temu is part of a broader trend in the European Union to regulate tech and e-commerce platforms more strictly. The Digital Services Act (DSA), which came into effect in November 2022, places new obligations on large online platforms to ensure they operate transparently and responsibly. The act addresses a range of issues from illegal content moderation to the prevention of addictive design elements. This marks a turning point for global e-commerce platforms as they now have to navigate increasingly complex regulatory landscapes in Europe.