The European Commission imposed a record €550 million fine on Chinese e-commerce platform AliExpress for failing to prevent illegal products from being sold online. The penalty is the largest issued under the Digital Services Act. The decision strengthens the EU’s enforcement of online consumer protection rules.
EU technology chief Henna Virkkunen said counterfeit goods, unsafe toys, and dangerous cosmetics remained available on the platform for extended periods. According to the Commission, some products continued to be recommended and advertised despite failing to meet EU safety standards.
Read more: EU hits Shein, Temu with new €3 parcel fee rules
The Commission concluded that AliExpress failed to properly assess and reduce the risks linked to illegal goods. Additionally, investigators found the platform lacked sufficient staff to review suspicious listings. Officials said moderators often had only seconds to assess reported products.
Meanwhile, the Commission said AliExpress also failed to evaluate how its recommendation and advertising systems promoted illegal products. According to officials, compliance checks could be easily bypassed through incorrect product categorization. The investigation began in March 2024.
The Digital Services Act requires very large online platforms to identify and mitigate risks involving illegal content and products. Therefore, the Commission said AliExpress’s failures created risks for consumers and unfair competition for businesses complying with EU regulations.
Read more: Google, Amazon, Meta, Microsoft, 15 others subject to EU content
AliExpress has until October 20 to submit an action plan addressing the violations. However, the company described the €550 million penalty as disproportionate. It said it has invested significant resources in product safety, consumer protection, and regulatory compliance.
The Commission said further penalties could follow if AliExpress fails to implement the required corrective measures. Meanwhile, the company said it is reviewing the decision and considering its legal options. The ruling follows a €200 million EU fine imposed on Temu earlier this year.