07:30 AM EDT, 06/18/2025 (MT Newswires) -- (Updates to add AliExpress' comment in the fifth paragraph)

Alibaba's ( BABA ) e-commerce service, AliExpress, was found to be in breach of its obligation under the EU's Digital Services Act to assess and mitigate risks associated with the dissemination of illegal products, preliminary findings by the European Commission showed on Wednesday.

The Commission said AliExpress did not take into account the limited resources in its moderation systems, 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 told MT Newswires it is committed to achieving a "positive and compliant result" through continued dialogue with the European Commission, as it works to address remaining concerns under the Digital Services Act