European Commission Fines AliExpress €550 Million Over Unsafe Goods

The European Commission fined the Chinese e-commerce platform AliExpress €550 million for failing to prevent the sale of unsafe and counterfeit products. This is the largest penalty imposed under the Digital Services Act (DSA) since its 2022 inception, exceeding previous fines issued to X and Temu, the latter of which was fined $325 million earlier this year.

An investigation launched in March 2024 revealed that AliExpress maintained an ineffective, understaffed brand authorization system and used recommendation algorithms that amplified the spread of illegal goods. Regulators found that these failures allowed dangerous cosmetics, unsafe toys, and counterfeit clothing to remain online for weeks or reappear after removal. AliExpress must submit a remedial action plan by October 20 or face periodic penalty payments.

AliExpress rejected the decision, calling the fine disproportionate and claiming it does not reflect the company's risk management framework or proactive enhancements. The enforcement follows a separate $600 million settlement between the U.S. government and AliExpress parent company Alibaba Group regarding illegal imports. This action signals an expanding regulatory focus by the EU to target large e-commerce sellers and combat the proliferation of non-compliant goods.