AliExpress will contest the penalty imposed by European Union regulators after they identified failures in the platform’s efforts to curb illegal, unsafe, and counterfeit goods.
The EU’s largest Chinese e‑commerce marketplace, AliExpress, has been levied a €550 million ($629 million) fine for not adequately addressing sales of prohibited, hazardous, and fake products.
“The proliferation of counterfeit apparel, unsafe toys, dangerous cosmetics, and other illicit items is not an inevitable cost of online shopping — it reflects a failure by AliExpress to meet its obligations under the Digital Services Act,” said Henna Virkkunen, European Commission Vice President, on Monday.
This penalty represents the biggest ever sanction under the Digital Services Act (DSA), which establishes stringent obligations for online services operating in the EU, particularly for very large platforms.
AliExpress announced its intention to appeal the “disproportionate” fine, arguing that the amount is excessive.
AliExpress Must Submit Remediation Plan by October 20
The retailer, a subsidiary of Alibaba Group, must pay the fine and has until October 20 to present a plan addressing the identified breaches. EU authorities will assess the proposal, after which further sanctions may be imposed.
One year ago, AliExpress committed to strengthening controls on illegal and potentially dangerous goods, including medicines and supplements. Nevertheless, the European Commission indicated that these steps did not fully resolve its broader concerns.
The Commission outlined that AliExpress:
- Did not consistently penalize traders offering illegal products, allowing them to continue selling on the platform.
- Lacked sufficient staff to effectively review potentially illicit listings.
- Inspectors faced excessive workloads, impeding oversight efforts.
- Certain illegal products were recommended or promoted before removal.
AliExpress responded that the EU’s decision “ignores our robust risk‑management framework and the significant, proactive enhancements we have implemented.”
The company also noted that it has collaborated with the Commission to meet its “evolving expectations.”
EU Uses DSA to Curb Major Tech Platforms
According to the EU, AliExpress serves 193 million users in the bloc, outpacing fashion-focused rivals Shein (156 million) and Temu (130 million).
“One in five Europeans reports shopping at least once a month from Shein, Temu, or AliExpress,” Virkkunen said.
Temu was fined €200 million in May, and Elon Musk’s social network X received a December sanction, both for violations of the DSA.