06:49 AM EDT, 06/18/2025 (MT Newswires) -- Alibaba's ( BABA ) e-commerce service, AliExpress, was found in breach of properly assessing and mitigating risks associated with the spread of illegal products under the EU's Digital Services Act, preliminary findings by the European Commission showed on Wednesday.

The Commission said AliExpress underestimated the threat by not factoring in limited moderation resources, failed to enforce penalties against repeat offenders, and showed systemic failures in its content moderation, which allowed abuse by malicious traders.

The Commission said AliExpress now has the opportunity to respond to the findings, and that if confirmed, the EU could issue a non-compliance decision, levy fines, and require a corrective action plan.

Separately, the Commission said it has accepted and made legally binding a series of commitments from AliExpress, which address concerns about illegal product monitoring, user safety, transparency in advertising and recommender systems, trader traceability, and researcher access to public data.

AliExpress did not immediately respond to MT Newswires' request for comment.