The European Union has imposed a record €550 million ($629 million) fine on Alibaba-owned AliExpress for failing to prevent the sale of illegal, unsafe and counterfeit products on its online marketplace.
The penalty, announced by the European Commission on Monday, is the largest issued so far under the Digital Services Act (DSA), which requires major online platforms to tackle illegal content and products more effectively.
The Commission said AliExpress failed to properly assess and mitigate the risks posed by counterfeit goods and dangerous products sold through its platform.
According to regulators, illegal products—including counterfeit goods, unsafe toys and hazardous cosmetics—remained available to consumers for weeks before being removed.
EU Tech Commissioner Henna Virkkunen said the shortcomings posed serious risks to consumers and created unfair competition for businesses complying with EU regulations.
"This is very dangerous for consumers and unfair for companies which are complying with all our rules," Virkkunen said.
The Commission also criticised AliExpress for overestimating the effectiveness of its content moderation systems and relying on inadequate measures to detect and remove illegal listings.
It said the company's recommendation and advertising systems contributed to the spread of illegal products, while its penalties against rule-breaking sellers were ineffective, allowing many to continue operating.
The EU also found AliExpress's "brand authorisation" programme, designed to prevent counterfeit sales, to be understaffed and easily bypassed by fraudulent traders.
AliExpress to appeal
AliExpress rejected the decision and said it would appeal what it described as a "disproportionate" fine.
The company said the Commission had overlooked the significant improvements it had already introduced to strengthen product safety and content moderation.
"Today's decision and disproportionate fine ignores our sound risk management framework and the significant, proactive enhancements we have made," the company said.
AliExpress added that it had worked closely with European regulators to meet evolving compliance requirements.
Deadline to comply
The European Commission has given AliExpress until October 20 to propose effective remedial measures.
If regulators conclude in December that the company has failed to comply, it could face additional penalties under the Digital Services Act.
The Commission noted that AliExpress had around 193 million users in Europe last year, compared with 156 million for Shein and 130 million for Temu.
The latest fine exceeds the €200 million penalty imposed on Temu and the €120 million fine issued to X (formerly Twitter) under the same legislation.
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