Europe’s top digital regulator has handed Alibaba-owned AliExpress a record €550 million fine, accusing the shopping platform of failing to curb the sale of illegal, unsafe and counterfeit goods to millions of EU consumers.
The penalty marks the European Commission’s third enforcement action under the bloc’s sweeping Digital Services Act, a rulebook that compels very large online platforms to take stronger steps against illegal and harmful content.
AliExpress was put in the commission’s sights in June last year, when regulators said the company was not meeting a central DSA obligation: properly assessing and reducing the risks that illegal products are spread through its marketplace.
The commission gave AliExpress until 20 October to submit remedial measures. Regulators warned that additional penalties could follow if, in December, they conclude the proposed fixes still fall short of DSA requirements.
“This is very dangerous for consumers, unfair for companies which are complying with all our rules,” EU tech chief Henna Virkkunen told reporters.
Virkkunen highlighted AliExpress’ scale in Europe, citing 193 million users last year, compared with Shein’s 156 million and Temu’s 130 million. Temu has already been fined under the DSA, while Shein remains under an ongoing investigation.
“One in five Europeans say they shop once a month from Shein, Temu and AliExpress,” Ms Virkkunen said.
AliExpress pushed back, calling the sanction excessive.
“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,” AliExpress said in an email.
“We are carefully reviewing the decision and considering all available options.”
Fines higher than X, Temu
In its findings, the commission said AliExpress had not convincingly demonstrated it had sufficient staff to review and address risks, and argued the company overstated how well its tools detect and remove illegal products.
Regulators also faulted AliExpress’ recommender and advertising systems, saying they intensified the circulation of illegal items. The commission criticised the platform’s reliance on a single quantitative metric to gauge whether its moderation efforts effectively prevent illegal products from appearing — or reappearing in similar forms.
According to the commission, gaps in detection left a wide range of illegal listings online for weeks, from counterfeit products to unsafe toys and dangerous cosmetics.
The regulator further said AliExpress’ penalty approach was too weak, allowing sanctioned sellers to keep offering illegal goods.
It also said AliExpress’ mandatory “brand authorisation” system — designed to block counterfeit sales — was ineffective, understaffed and easily bypassed by traders selling fake products.
The commission said it treated the relative novelty of the Digital Services Act as a mitigating factor when setting the fine, noting the amount could have been higher.
Even so, the €550 million punishment far exceeds previous DSA fines: €120 million issued to Elon Musk’s social media platform X in December last year, and €200 million imposed on Temu in May this year.
AliExpress avoided a separate fine — which could have reached 6% of its global annual turnover — in June last year after agreeing to measures aimed at stopping the spread of potentially illegal and pornographic material on its platform.
