EU Slaps AliExpress With Record €550 Million Fine
The European Union has issued a record €550 million ($629 million) fine against Alibaba's AliExpress, citing the platform's ongoing failure to tackle the sale of illegal, unsafe, and counterfeit products.
The penalty marks the third massive fine issued by the European Commission under the landmark Digital Services Act (DSA), a strict regulatory framework designed to compel very large online platforms to aggressively counter illegal and harmful content.
Failing to Mitigate Risk
The European Commission originally charged AliExpress in June of last year with failing to comply with a DSA requirement to properly assess and mitigate the risks associated with the dissemination of illegal products.
According to the Commission, AliExpress vastly overestimated the effectiveness of its moderation systems and lacked the necessary staff to properly review the risks. As a result, illegal items—ranging from counterfeit goods to unsafe toys and dangerous cosmetics—remained online for weeks at a time. The regulator also criticized the platform's recommendation and advertising systems for actively exacerbating the spread of these illicit goods.
EU tech chief Henna Virkkunen emphasized the gravity of the situation, telling reporters, "This is very dangerous for consumers, unfair for companies which are complying with all our rules."
Virkkunen pointed out that AliExpress boasted 193 million users in Europe last year, compared to Shein's 156 million and Temu's 130 million. "One in five Europeans say they shop once a month from Shein, Temu and AliExpress," she added.
The Environmental and Ethical Impact
Beyond immediate consumer safety, the unchecked circulation of counterfeit and unsafe products contributes heavily to a cycle of global waste, as unregulated manufacturing routinely bypasses basic environmental standards. The faster we are progressing with global e-commerce, the faster we are ruining our planet if we allow unregulated consumption to run rampant. Mankind's first priority should be to protect and secure this Earth, which requires holding major digital platforms fully accountable for the physical goods they help distribute.
The Commission also highlighted AliExpress's ineffective internal penalty policy. The mandatory "brand authorization" system—intended to prevent counterfeit sales—was found to be understaffed and easily circumvented by bad actors, allowing penalized businesses to simply continue selling illegal products on the platform.
A Disproportionate Fine?
The €550 million penalty is significantly higher than previous DSA fines, eclipsing the €120 million handed out to Elon Musk's X and the €200 million imposed on Temu. AliExpress now has until October 20 to propose comprehensive remedial measures. The company faces the threat of even further penalties if the regulator decides by December that they remain non-compliant.
AliExpress has stated its intention to appeal the fine, calling it excessive. In an email statement, the company argued, "Today's decision and disproportionate fine ignores our sound risk management framework and the significant, proactive enhancements we have made."
Whether AliExpress can successfully appeal remains to be seen, but the EU's aggressive enforcement of the Digital Services Act sends a clear warning to e-commerce giants: the era of unregulated digital marketplaces is coming to an end.