The European Union has imposed a record €550 million fine on Alibaba-owned AliExpress after concluding that the online marketplace failed to adequately prevent the sale of illegal, unsafe and counterfeit products to consumers across Europe.
The penalty, announced by the European Commission, is the largest issued so far under the Digital Services Act (DSA), the EU’s landmark legislation that places stricter responsibilities on major online platforms to detect and remove illegal content and products.
The Commission first charged AliExpress in June last year, saying the company had failed to properly assess and reduce the risks associated with illegal goods being sold through its platform. It later gave the company until October 20 to submit measures addressing those concerns. European regulators will review those proposals later this year, and AliExpress could face additional penalties if they are found to be insufficient.
European Commission Executive Vice-President for Tech Sovereignty, Security and Democracy Henna Virkkunen said the shortcomings posed risks to both consumers and legitimate businesses.
“This is very dangerous for consumers and unfair for companies which are complying with all our rules,” Virkkunen said while announcing the decision.
She noted the scale of AliExpress’ presence in Europe, saying the platform recorded 193 million users in the region last year, compared with 156 million for Shein and 130 million for Temu. According to the Commission, around one in five Europeans shop at least once a month on one of those three online marketplaces.
The Commission said its investigation found that AliExpress overstated the effectiveness of its systems for detecting illegal products and did not properly evaluate whether it had sufficient staff to monitor risks. Regulators also criticised the company’s recommendation and advertising systems, saying they contributed to the spread of illegal goods.
Investigators found that counterfeit products, unsafe toys and potentially dangerous cosmetics often remained available for weeks before being removed. The Commission also concluded that AliExpress’ penalties for offending sellers were ineffective, allowing many traders to continue listing illegal products.
Another area of concern was the platform’s mandatory brand authorisation programme, which was designed to reduce counterfeit sales. Regulators said the system was understaffed, ineffective and easily bypassed by sellers offering fake goods.
AliExpress rejected the findings and described the financial penalty as excessive.
“We disagree with today’s decision and the disproportionate fine, which does not adequately reflect our established framework and the significant, proactive enhancements we have made,” the company said in a statement, adding that it is reviewing the decision and considering its legal options.
The €550 million penalty is significantly larger than previous Digital Services Act fines, including the €120 million imposed on Elon Musk’s social media platform X last year and the €200 million fine issued to Temu earlier this year.
Although AliExpress avoided sanctions in a previous DSA investigation after agreeing to strengthen controls against illegal and pornographic content, European regulators said the latest action reflects continuing concerns over consumer safety and compliance with the bloc’s digital rules.
