The European Commission has imposed a €550m penalty on AliExpress for breaching its legal obligations to assess and mitigate risks related to illegal, unsafe, and counterfeit products offered through its marketplace. The fine represents the highest sanction issued under the Digital Services Act, which compels technology companies to strengthen their efforts against illicit and harmful content.
A two-year investigation determined that AliExpress’s detection and compliance systems were inadequate. The commission found that automated systems designed to identify problematic goods functioned improperly, allowing many illegal products to evade detection while others remained accessible for extended periods despite being flagged. Additionally, the platform failed to consistently enforce consequences against merchants engaged in selling prohibited items, and its product verification mechanisms could be readily circumvented.
AliExpress, owned by Chinese conglomerate Alibaba, stated it disagrees with the decision and considers the fine disproportionate. The company maintained that it invests substantially in safety measures and risk management but indicated it would contest the ruling. Under the commission’s directive, AliExpress must submit a comprehensive remediation plan by 20 October outlining steps to address the identified violations.
The enforcement action follows similar penalties against other major online platforms. Earlier this year, rival retailer Temu received a €200m fine for comparable violations involving dangerous consumer goods, while social media company X was fined €120m for deficient user verification practices related to its paid verification service.