Alibaba-owned AliExpress has been handed a record €550 million European Union fine after regulators found the online marketplace failed to curb the sale of illegal, unsafe and counterfeit goods.
The penalty is the third imposed by the European Commission under the EU’s landmark Digital Services Act, which compels very large online platforms to take stronger action against illegal and harmful content.
In June last year, the commission accused AliExpress of breaching a central DSA obligation by failing to properly assess and reduce the risks linked to the distribution of illegal products.
Regulators gave AliExpress until 20 October to submit corrective measures. The company could face additional penalties if the commission concludes in December that its proposals do not meet DSA requirements.
Ms Virkkunen highlighted the platform’s reach, noting that AliExpress had 193 million European users last year, compared with 156 million for Shein and 130 million for Temu. Temu has also received a DSA fine, while Shein remains under investigation.
“One in five Europeans say they shop once a month from Shein, Temu and AliExpress,” Ms Virkkunen said.
AliExpress rejected the decision, describing the penalty as disproportionate.
“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
The commission said AliExpress had failed to adequately determine whether it employed enough staff to assess risks, while overstating how effectively its systems could identify and remove illegal goods.
Regulators also said the platform’s recommendation and advertising tools amplified the circulation of illegal products. They criticised AliExpress for relying on a single quantitative measure to judge whether its moderation system could stop prohibited goods from appearing or returning in similar forms.
According to the commission, those detection failures allowed a broad range of illegal items — from counterfeit goods to unsafe toys and dangerous cosmetics — to remain available for weeks.
The regulator further challenged the company’s ineffective sanctions policy, saying businesses that had already been penalised were still able to sell illegal products through the platform.
AliExpress’ mandatory “brand authorisation” system, designed to block counterfeit sales, was also ineffective and understaffed, the commission said, leaving traders with an easy route to market fake goods.
The regulator said it treated the relative novelty of the Digital Services Act as a mitigating factor when calculating the penalty, meaning the fine could otherwise have been larger.
At €550 million, the sanction far exceeds the €120 million fine imposed on Elon Musk’s social media platform X in December last year and the €200 million penalty issued to Temu in May this year, both over DSA breaches.
AliExpress avoided a separate fine of up to 6% of its global annual turnover in June last year after committing to measures aimed at limiting the spread of potentially illegal and pornographic material on its platform.
