Written by 11:39 Tech News Views: [tptn_views]

5 Key Insights from EU’s Formal Investigation of AliExpress Under the Digital Services Act

The digital landscape is shifting and the regulatory body is trying to keep pace. A third major inquiry has recently been opened by the European Union under the Digital Services Act (DSA). This time, the prominent Chinese online marketplace AliExpress is under scrutiny. This serves as a significant milestone in the history of the European Union’s ecommerce regulations. Let’s dissect this scenario and unpack five major insights from this development.

1. A New Chapter in the DSA Journey

The DSA, which is the European Union’s modernized version of ecommerce regulations, demands risk assessments and strategies to mitigate them. The probe into AliExpress marks the first time that an online marketplace has been subjected to a formal investigation under this act.

2. Revolutionary Shift in Regulatory Overview

AliExpress being the subject of this probe indicates a transformative shift in the EU’s oversight strategy. This investigation marks the shift from theoretical regulations to their practical, investigative implication, moving us into a new era of digital commerce regulation.

3. China’s Digital Dominance Under Examination

China’s digital market dominance has often been a point of globe-spanning conversations. This investigation throws a spotlight on this dominance, and could potentially impact the operations of other Chinese digital platforms within the European Union as well.

4. AliExpress – A Unanimous Choice

Given that the DSA has only been applied to very large platforms before, the fact that AliExpress is the first online marketplace to face an investigation under it is a testament to its reach, scale, and impact on the market.

5. Potential Precedent for Future Probes

The outcome of this investigation could set a precedent for other online marketplaces and establish a roadmap for the EU’s future actions in regulating digital commerce.

The unfolding of this formal probe will inevitably shed light on the effectiveness of the newly redesigned Digital Services Act by the European Union. It will also allow insight into how sizable online marketplaces like AliExpress function and manage potential risks. As online commerce continues to rise, these investigations will play a significant role in shaping its future path and structures.

Credit: BBC. TechCrunch, Reuters