The European Commission has fined AliExpress, a prominent Chinese online marketplace, 550 million euros ($629 million). This penalty is for failing to effectively address the sale of unsafe and counterfeit products on its platform. The fine marks the largest ever for breaches of the European Union’s Digital Services Act (DSA).
Earlier this year, another online retailer, Temu, faced a 200 million euro fine for similar violations. In the previous year, Brussels imposed a $120 million penalty on Elon Musk’s social media platform X for related issues.
The proliferation of counterfeit clothing, unsafe toys, and hazardous cosmetics represents a failure by AliExpress to meet its obligations under the DSA, according to Henna Virkkunen, the commission’s executive vice-president for tech sovereignty, security, and democracy. She emphasized that scale does not excuse neglecting identified risks.
The commission requires AliExpress to take decisive action, urging it to adhere to consumer safety standards. An email from AliExpress to The Associated Press stated the company’s firm commitment to the DSA since its enactment. AliExpress highlighted its substantial investment in risk assessment, product safety, and consumer protection.
Despite acknowledging these efforts, AliExpress disagrees with the fine’s proportionality. The company believes the penalty does not reflect its established framework and proactive measures. AliExpress is reviewing the decision and contemplating available options.
The European Commission’s ruling is based on AliExpress’s activities until June 2025, following a previous preliminary judgment that identified insufficient action on illegal product sales under the DSA. AliExpress must submit an action plan by October 20. This plan must outline strategies to address systemic risk breaches.
The DSA aims to protect users from harmful online content that violates platform terms of service. It also seeks to uphold Europeans’ rights, such as privacy and free speech.
The announcement of the fine coincides with Alibaba, AliExpress’s parent company, agreeing to pay $600 million to resolve a separate dispute with the U.S. government. This case involved accusations of selling illegal pharmaceuticals and related equipment in the United States.
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