THE HAGUE, Netherlands (AP) — On Monday, the European Commission announced a substantial fine of 550 million euros ($629 million) against the Chinese online marketplace AliExpress for failing to adequately address the sale of unsafe and counterfeit products on its platform. This penalty marks the largest fine ever imposed under the European Union’s Digital Services Act (DSA), highlighting the increasing regulatory scrutiny faced by online marketplaces.
This enforcement action follows a series of similar penalties in recent months, including a 200 million euro fine against another online retailer, Temu, for comparable violations. Additionally, last year, the EU imposed a $120 million fine on X, the social media platform owned by Elon Musk. These fines reflect a growing trend of regulatory actions targeting companies that do not comply with stringent consumer safety laws in online environments.
Henna Virkkunen, the European Commission's executive vice-president for tech sovereignty, security, and democracy, emphasized the seriousness of the situation. In a statement, Virkkunen noted, “The spread of counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal and harmful products is not an unavoidable cost of shopping online — it is a failure by AliExpress to comply with its obligations under the Digital Services Act.” She stressed that scale should not exempt companies from their responsibilities, and urged AliExpress to systematically identify and address risks to ensure consumer safety.
AliExpress responded to the fine by asserting its commitment to compliance with the DSA. The company stated, via an emailed comment to the Associated Press, that it has invested considerably in risk assessment, product safety, and consumer protection since the DSA's implementation. However, it also expressed its disagreement with the “disproportionate fine,” arguing that it does not adequately reflect the company's existing frameworks and the proactive measures implemented to enhance safety standards. AliExpress indicated it is reviewing the decision and considering all available options.
The fine was linked to AliExpress's conduct until at least June 2025. During that time, the commission had issued a preliminary ruling indicating that the company was not sufficiently addressing the sale of illegal products under the DSA. The commission later accepted AliExpress’s commitments to improve its operational systems. In a further action, the commission has given AliExpress until October 20 to submit a detailed action plan that outlines measures aimed at remedying its breach of obligations to assess and mitigate systemic risks associated with safety and compliance.
The Digital Services Act, established to enhance online safety, aims to protect users from harmful content that is either illegal or violates platform terms of service. This includes, but is not limited to, the promotion of activities like genocide or eating disorders. The act also seeks to safeguard fundamental rights such as privacy and free speech for European citizens, thus enhancing the digital environment's overall integrity.
In a related context, this announcement comes less than three weeks after Alibaba, the operator of AliExpress, disclosed a payment of $600 million to resolve disputes with the U.S. government regarding allegations linked to the sale and import of illegal pharmaceuticals, controlled substances, regulated chemicals, and pill-making equipment into the United States. Such incidents underline the growing regulatory pressures facing major international e-commerce players.
