The European Commission has imposed a record fine on AliExpress for failing to adequately prevent the sale of counterfeit and dangerous products on its platform.
Key facts
- •AliExpress has 193 million users in Europe, exceeding the user bases of Shein and Temu.
- •The fine is the highest ever issued under the Digital Services Act.
- •Alibaba, the parent company of AliExpress, reported a global turnover of €122 billion last year.
- •AliExpress must present a plan to address the identified breaches by October 20.
- •The European Commission previously fined Temu €200 million earlier this year for similar violations.
The European Commission has fined Chinese online retailer AliExpress €550 million for failing to meet legal obligations regarding the sale of illegal and unsafe goods. The two-year investigation concluded that the platform's detection systems were ineffective at flagging counterfeit clothing, dangerous cosmetics, and unsafe toys. AliExpress, owned by Alibaba, has stated it will appeal the decision, calling the penalty disproportionate.
By the numbers
Findings of the investigation
Regulators found that AliExpress failed to diligently assess risks associated with illegal products, allowing many to remain on the site for weeks. The European Commission noted that the company's product compliance checks were easily circumvented and that penalties for traders selling prohibited items were not properly enforced. EU tech chief Henna Virkkunen stated that the presence of these harmful goods represents a failure by the company to comply with its legal obligations.
Regulatory context and company response
The penalty is the largest issued under the EU's Digital Services Act, which mandates that tech platforms take active measures to counter illegal content. While the act allows for fines up to 6% of a company's global revenue, this penalty is significantly lower than that threshold. AliExpress maintains that it invests substantial resources in consumer protection and risk management, arguing that the commission's decision ignores its proactive enhancements. The company is required to pay the fine and submit a remediation plan by October 20.
Timeline
- Last yearThe European Commission fined X €120 million for deceptive verification practices.
- Earlier this yearTemu was fined €200 million for allowing the sale of illegal products.
- October 20AliExpress must present a plan to the EU detailing actions to address the breaches.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business.
