EU Slaps AliExpress With €550 Million Fine Over Illegal Products
The European Commission has imposed a record €550 million fine on Chinese e-commerce platform AliExpress for failing to prevent the sale of illegal products, including counterfeit clothing, unsafe toys, and hazardous cosmetics. The penalty, issued under the EU’s Digital Services Act (DSA), follows findings that the company did not adequately remove illegal listings or penalize repeat offenders. AliExpress, owned by Alibaba Group, said it disagrees with the decision, calling the fine disproportionate and stating it is reviewing its legal options.
According to the Commission, AliExpress lacked sufficient moderation staff, allowing illegal products to remain on the platform for extended periods and, in some cases, even recommending them before removal. EU Digital Commissioner Henna Virkkunen said the platform’s practices put European consumers at risk while creating unfair competition for businesses that comply with safety and quality standards. The Commission also noted that counterfeit goods continue to circulate despite the company’s previous commitments to strengthen monitoring.
AliExpress has until October 20 to submit a corrective action plan to EU regulators. Failure to satisfy the Commission could result in additional daily penalties. While the €550 million sanction is the largest ever issued under the DSA, it remains well below the maximum penalty of 6% of Alibaba’s global annual turnover, which could exceed €7 billion. The action follows a €200 million fine imposed on Temu earlier this year over similar concerns involving illegal products sold within the European Union.
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