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EU Accepts AliExpress Commitments to Combat Illegal Online Products

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The European Commission announced on Wednesday that it has accepted binding commitments from Alibaba’s AliExpress to tackle the spread of illegal and pornographic materials on its platform. This follows a March investigation into AliExpress’s alleged failure to adequately address these concerns, which could have resulted in significant fines.

Despite the acceptance of these commitments, AliExpress may still face penalties. The Commission noted that the company underestimated the risks of disseminating illegal goods and failed to enforce sanctions against traders posting illicit content. AliExpress has the opportunity to respond to these preliminary findings.

AliExpress stated it has cooperated proactively with the Commission and remains confident that ongoing dialogue will lead to a compliant resolution.

The commitments include improvements to monitoring systems for illegal products, such as unapproved medicines, food supplements, and adult content. They also enhance transparency around advertising and recommendation algorithms, and facilitate trader traceability on the platform.

Allegro Leans Into Local Strategy to Fend Off Rising Asian Competition

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Polish e-commerce leader Allegro is intensifying its focus on local products, services, and delivery infrastructure to distinguish itself from rapidly expanding Asian competitors such as Temu and AliExpress, the company said Thursday.

The strategy includes removing long-delivery-time offers from East Asia on its international platforms in Czech Republic, Slovakia, and Hungary, following a similar move on its Polish marketplace, which had little to no impact on sales volumes, according to CFO Jon Eastick.

“We’re looking to really double down on our differentiators versus the Asian players and make it really clear to the consumer why they look to Allegro every day as the main place to shop,” Eastick said during a conference call.

Key Strategic Moves

  • Long-shipping offers from East Asian sellers have been phased out to highlight local availability and faster delivery.

  • Allegro will continue investing in platform upgrades, such as:

    • Loyalty program enhancements

    • AI-driven recommendations

    • Smarter ad targeting

The changes are part of Allegro’s broader effort to maintain its dominant position in Polish e-commerce, where it currently holds 38.8% market share, compared to:

  • Amazon – 3.9%

  • AliExpress – 3.4%

  • Temu – 1.5%
    (Source: Euromonitor International, 2024)

“Asian platforms made rapid progress in early 2024, but that has slowed dramatically,” Eastick said, citing internal monthly surveys of transaction shares.

Competition and Marketing Dynamics

Temu, which entered Poland in June 2023, has been aggressive in marketing spend, prompting Allegro to respond.

  • Q1 2024 marketing spend: 317.1 million zlotys ($84.46 million), up 10% YoY

  • This is down from a 28.7% jump in Q4 due to the seasonal holiday push.

“Marketing spend and share of voice is definitely where we feel the impact of the new competitors the most,” Eastick noted.

Despite the increased advertising intensity from rivals, Allegro appears confident in its defensive positioning, relying on brand loyalty, localized logistics, and strong vendor relationships to stay ahead.

Alibaba Misses Revenue Estimates as Price Wars and Economic Uncertainty Pressure Growth

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Alibaba reported fiscal Q4 revenue of 236.45 billion yuan ($32.8 billion) on Thursday, narrowly missing analyst expectations of 237.24 billion yuan, as the company grapples with a sluggish Chinese economy, intensifying e-commerce price wars, and global trade uncertainties.

The company’s adjusted earnings of 12.52 yuan ($1.74) per American Depositary Share also came in slightly below the 12.94 yuan forecast by analysts polled by LSEG. U.S.-listed Alibaba shares dropped nearly 7% in early trading, though they remain up 58% year-to-date.

E-Commerce Under Pressure:

Alibaba’s domestic retail arm (Taobao and Tmall) reported 9% revenue growth, bolstered by new consumer engagement and rising order volumes. However, the gains weren’t enough to fully offset competitive pressure from:

  • JD.com, which beat its Q1 estimates earlier this week

  • Pinduoduo (PDD Holdings), known for aggressive discounting

Facing price-sensitive consumers amid a property crisis and low consumer confidence, Chinese e-commerce giants are locked in a pricing battle. To stay competitive, Alibaba is doubling down on instant retail, offering 30- to 60-minute delivery services.

“This instant retail market could grow from 500–600 million consumers to 1 billion,” said Jiang Fan, CEO of Alibaba’s E-commerce Business Group. “We’ll be investing aggressively in this space.”

International and Cloud Segments:

  • International digital commerce (AIDC) rose 22%, missing the expected 26.4%, with analysts noting a lack of commentary on AliExpress and potential U.S. tariff impacts.

  • Cloud Intelligence, a bright spot, posted 18% growth to 30.13 billion yuan, driven by Alibaba’s leadership in China’s AI development. In April, the company launched Qwen 3, an upgraded AI model with hybrid reasoning capabilities.

Strategic Outlook:

CEO Eddie Wu warned of “uncertainties in global trade regulations”, a veiled reference to tariff risks in Western markets. He reaffirmed the international division’s path to profitability in the coming fiscal year.

Looking ahead, investors will watch Alibaba’s performance during the “618” shopping festival in June — one of the year’s biggest consumer events — as a gauge of demand recovery and market competitiveness.