The European Union has imposed a record 550 million euro ($630 million) fine on AliExpress, an e-commerce platform owned by Alibaba. The fine was issued for the platform’s failure to effectively address the sale of illegal, counterfeit, and unsafe products. The European Commission stated that AliExpress did not take adequate measures to prevent the sale of prohibited items like toys and cosmetics on its marketplace.
Regulators discovered that even after identifying illegal listings, many products remained available for weeks on AliExpress. Additionally, authorities noted that several products sold on the platform did not meet the stringent product safety and environmental standards of the European Union. This penalty is the largest ever imposed under the bloc’s Digital Services Act (DSA).
The investigation leading to the fine was initiated in March 2024 under the Digital Services Act, a legislation introduced by the European Union in 2022 to enhance oversight of major online platforms and enhance consumer protection in the digital economy. EU technology chief Henna Virkkunen emphasized the importance of systematically identifying and addressing risks to ensure safe online shopping for consumers.
The 550 million euro fine reflects the severity of the violations, their duration, and the impact on consumers across the European Union. This penalty surpasses previous fines under the DSA, including a 120 million euro fine on Elon Musk’s social media platform X and a 200 million euro fine on Chinese online retailer Temu. AliExpress has criticized the penalty as “disproportionate,” stating that it does not adequately recognize the company’s compliance efforts and the significant safety enhancements made on the platform. The company is exploring legal options in response to the decision.
