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AliExpress faces record $629 million EU fine
The EU fined AliExpress €550 million under the DSA after investigators found millions of counterfeit and unsafe products on sale.
Image: Engadget
AliExpress has been hit with a record €550 million ($629 million) fine by the European Commission, which says the platform allowed counterfeit and dangerous products to be sold across the EU.
Investigators said they found “millions” of listings for counterfeit goods, unsafe toys and dangerous cosmetics, including products that remained on sale even after being flagged. The Commission said that failure breached AliExpress’s obligations under the Digital Services Act, which requires major platforms to police illegal and unsafe products and services.
“The spread of counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal and harmful products… is a failure by AliExpress to comply with its obligations under the Digital Services Act [DSA].”
The EU opened its investigation in March 2024, looking at suspected DSA breaches including AliExpress’s advertising and recommendation systems. According to the Commission, the company did not have enough staff for proper oversight, and some employees screening products had only “tens of seconds” to decide whether listings met EU standards.
Virkkunen said the company’s lack of diligence was dangerous for consumers and unfair to businesses following the rules. She added that scale is not an excuse and that platforms must identify and address risks systematically.
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AliExpress, owned by Alibaba, called the penalty disproportionate but did not say whether it would appeal.
“We disagree with today’s decision and the disproportionate fine, which does not adequately reflect our established framework and the significant, proactive enhancements we have made.”
The company said it is reviewing the decision and considering its options. The fine is the largest yet under the DSA. In May, Temu was fined €200 million ($232 million) under the same law for failing to prevent sales of illegal products.
The EU has previously said that on major platforms including Shein, Temu and AliExpress, as much as 65 percent of cosmetics, 63 percent of food supplements and 60 percent of personal protective equipment such as hard hats and steel-toe boots were non-compliant.
Enterprise Editor
Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.
via Engadget
