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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.

Microsoft Adjusts Office-Teams Pricing to Avoid EU Antitrust Fine

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Microsoft is making changes to the pricing structure of its Office product bundled with Teams, aiming to avoid a potential EU antitrust fine, according to sources familiar with the matter. This adjustment comes in response to complaints from competitors, including Salesforce-owned Slack and German rival alfaview, who raised concerns about Microsoft’s practice of bundling its chat and video app, Teams, with Office.

Teams, added to Office 365 in 2017, became particularly popular during the pandemic as a video conferencing tool, replacing Skype for Business. Microsoft’s new pricing strategy, introduced in 2023, unbundles Teams from Office, offering Office without Teams at a lower price (2 euros cheaper) and selling Teams as a standalone service for 5 euros per month. The aim is to create more competitive pricing, enabling rivals to offer their products at more attractive rates.

The European Commission has been seeking feedback from industry stakeholders, with a deadline for responses this week, before deciding whether to launch a formal market test. Microsoft has also reportedly proposed improved interoperability terms to help competitors in the space.

Both the EU competition authority and Microsoft declined to comment. The Commission’s investigation could lead to a fine of up to 10% of Microsoft’s global annual revenue, which could be significant, considering the company’s history with EU antitrust cases, including a 2.2 billion euro fine in the early 2000s for bundling products. If the EU accepts Microsoft’s offer, it could clear the path for other investigations, such as those involving Apple and Google.

EU Announces Guidelines to Prevent AI Misuse by Employers, Websites, and Police

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The European Commission unveiled new guidelines on Tuesday aimed at curbing the misuse of artificial intelligence (AI) in various sectors, including employment, online services, and law enforcement. As part of the European Union’s broader AI regulations, the guidelines prohibit practices such as using AI to track employees’ emotions or to manipulate consumers into spending money online.

The guidelines are part of the EU’s Artificial Intelligence Act, which, while legally binding since last year, will be fully enforceable by August 2, 2026. Some provisions, such as those concerning specific AI practices, take effect earlier, including the ban on deceptive AI practices from February 2 this year.

Prohibited practices under the guidelines include the use of AI to create “dark patterns” on websites designed to manipulate users into making financial commitments, as well as AI applications that exploit individuals based on factors like age, disability, or socio-economic status. Additionally, social scoring systems that use personal data, such as race or origin, to categorize individuals are banned, alongside the use of biometric data by police to predict criminal behavior without proper verification.

Employers are also restricted from using surveillance tools like webcams or voice recognition systems to monitor employees’ emotions. The guidelines further prohibit the use of mobile CCTV cameras equipped with facial recognition for law enforcement, except under strict conditions with safeguards in place.

The EU has given member countries until August 2 to designate market surveillance authorities to enforce these AI rules. Companies found in violation could face hefty fines ranging from 1.5% to 7% of their global revenue. This comprehensive regulatory framework contrasts with the United States’ voluntary compliance approach and China’s focus on maintaining social stability through state-controlled AI.