The European Union has imposed a record €550 million ($629 million) fine on AliExpress, accusing the online marketplace of failing to prevent the sale of illegal and unsafe products, including toys, cosmetics and counterfeit goods.
The penalty, announced on Monday, is the largest ever issued under the EU's Digital Services Act (DSA), the bloc's landmark law requiring major online platforms to identify and mitigate risks to consumers.
EU officials said their investigation found AliExpress failed to remove illegal products effectively and allowed many listings to remain online for weeks after they were detected.
“Risks must be identified and addressed systematically to ensure consumers can safely shop online,” EU tech chief Henna Virkkunen said.
Unsafe products, counterfeit goods under scrutiny
The European Commission said AliExpress overestimated the effectiveness of its systems for detecting illegal products, with millions of banned items reportedly reappearing after removal.
Officials also found that many sellers of illegal goods remained active on the platform and that AliExpress' mandatory brand authorization system was ineffective at preventing counterfeit products from being listed.
The investigation, launched in March 2024, concluded that some products sold on the platform failed to meet the EU's environmental and consumer safety standards.
AliExpress pushes back
AliExpress described the penalty as "disproportionate," saying it does not reflect the company's compliance framework or the improvements it has made. The company said it is considering its legal options.
The EU said the size of the fine reflected the nature, duration and impact of the violations on European consumers.
AliExpress, owned by Alibaba, has around 193 million users in the EU, making the bloc its largest market. The company must now pay the fine and submit a compliance plan by October 20 or risk additional penalties.
The ruling follows other major DSA enforcement actions, including a $228.7 (€200 million) fine against Temu and a $137.20 (€120 million) penalty imposed on X, underscoring Brussels' growing scrutiny of major online platforms
