Fines for counterfeiting in the EU: AliExpress may suffer big losses

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Under the magnifying glass — protecting customers from fakes.

On Monday, the European Union announced the launch of an investigation into the Chinese Internet giant AliExpress. The main issue of the investigation is how the company protects consumers from illegal goods on the Internet, including fake medicines.

The European Commission has sent an official request to AliExpress, owned by Alibaba, for compliance with the new EU law-the Digital Services Act (DSA). This law is aimed at combating the distribution of illegal goods and content on the Internet.

The European Commission wants to know how AliExpress is going to comply with its obligations to assess risks and take measures to protect consumers online, especially with regard to the distribution of illegal goods, such as fake medicines. The company has been given until November 27 to respond.

The European Union has developed powerful tools to combat the influence of large technology companies, including the DSA and the accompanying law-the Digital Markets Act. These laws impose strict restrictions and oversight on the activities of Internet giants.

The DSA came into effect in August for 19 "very large" platforms, including AliExpress, Facebook and Instagram, which have more than 45 million monthly users in Europe.

The European Union has already launched investigations into Meta, TikTok and X, demanding more information about how these platforms deal with disinformation.

For violations of the platform, you can be fined up to six percent of the global turnover.

The EU's chief Technical Inspector, Thierry Breton, stressed that the DSA doesn't just stand up to hate speech and misinformation on the Internet. The law also aims to remove illegal or unsafe goods sold in the EU through electronic platforms, including the growing number of counterfeit and potentially dangerous medicines and pharmaceuticals sold online.

Among the 19 platforms listed by the EU are also Amazon Store, Google Shopping and clothing retailer Zalando. Amazon and Zalando are contesting their inclusion in this list.

According to the DSA rules, online stores must verify the identity of sellers before allowing them to work on their platforms, and block repeat scammers.

The rules state that online marketplaces can be held liable for any damage caused by products purchased by users that are inappropriate or dangerous.

Last week, the European Medicines Agency warned of the proliferation in Europe of fake injection pens of Ozempic, a popular diabetes drug that went viral on social media as a weight-loss tool.

A report by Europol and the European Union's Intellectual Property Office for 2022 warns of an increase in the number of counterfeit goods entering the EU in small parcels. "This notable increase is due to the growth of online markets," the report said.

According to the report, the production and sale of fake goods is heavily dependent on online platforms, social networks, and instant messaging services.
 
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