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AliExpress faces record $625M EU fine
The EU fined AliExpress more than $625 million under the DSA, citing failures to remove illegal, unsafe, and counterfeit products.
Image: Ars Technica
The European Commission has hit AliExpress with the largest fine so far under the Digital Services Act, topping $625 million after finding widespread failures to stop illegal, unsafe, or counterfeit products on the platform.
In a press release, the Commission said AliExpress did not “diligently assess and mitigate risks relating to the sale of illegal, unsafe, or counterfeit products on its e-commerce platform.” Officials said the company failed to adequately staff teams responsible for removing dangerous and fake goods, while its systems made it easy for bad actors to slip past enforcement.
According to The Guardian, some moderators had only “tens of seconds” to decide whether a flagged product met EU standards. The Commission said it found millions of products that reappeared after being flagged for removal, and that some stayed online for longer than a month.
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The EU also found that sellers could avoid automatic takedowns simply by miscategorizing products, reducing the checks required before dangerous goods were listed. AliExpress' mandatory brand authorization system was described as ineffective and understaffed, and the company did not penalize traders selling illegal goods as its policies said it would.
The Commission said AliExpress also failed to properly assess how its recommender and advertising systems helped spread illegal products, effectively boosting their visibility instead of limiting them.
Speaking to reporters, EU tech chief Henna Virkkunen noted that one in five Europeans shop monthly on retail platforms such as AliExpress, Temu, and Shein. The Commission also said AliExpress relied on a single quantitative metric to judge whether its enforcement systems were working, and that the measure failed to capture the real scale of harm. Its testing found that a high volume of illegal products—including unsafe toys and dangerous cosmetics—continued circulating despite the platform’s moderation efforts.
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 Ars Technica
