The European Commission has fined AliExpress €550 million ($629 million) for failing to properly address illegal, unsafe and counterfeit products sold through its platform.
The penalty, announced on Monday, is the largest fine issued so far under the European Union’s Digital Services Act (DSA), a law that requires online platforms to assess and reduce risks linked to harmful content and activities.
According to the Commission, AliExpress failed to carry out adequate checks on the risks created by the sale of illegal products, while its systems allowed some harmful listings to remain available to users for extended periods.
The regulator said counterfeit goods, unsafe toys and dangerous cosmetics were among products that appear on the platform despite AliExpress’ efforts to remove them.
EU officials have also spoken about the company’s ability to monitor sellers and enforce penalties against traders who repeatedly violate its policies.
“AliExpress did not properly evaluate whether it had sufficient staff to review potentially illegal products,” the Commission said, adding that the platform had overestimated the effectiveness of its detection and removal systems.
The investigation found that AliExpress relied heavily on automated systems but did not have enough human oversight to manage the volume of potentially harmful listings on its marketplace.
The Commission also criticised the platform’s recommendation and advertising systems, saying they sometimes helped promote illegal products before they were removed.
It said AliExpress used limited measurements to assess the effectiveness of its moderation system, which meant the company could not accurately determine whether illegal products were being prevented from returning to the platform.
The regulator further found weaknesses in AliExpress’ seller penalty system. Some businesses that had been sanctioned for selling illegal products were reportedly able to continue operating on the platform.
The Commission said the platform’s mandatory “brand authorisation” system, designed to prevent counterfeit sales, was ineffective and lacked enough staff to properly verify sellers.
As a result, some traders were able to bypass the process and list fake products before they were later removed.
EU tech chief Henna Virkkunen said the failure created risks for consumers and unfair competition for companies that comply with European regulations.
“This is very dangerous for consumers, unfair for companies which are complying with all our rules,” Virkkunen told reporters.
She also highlighted the size of AliExpress’ European user base, noting that the platform had 193 million users in the region last year, compared with 156 million for Shein and 130 million for Temu.
“One in five Europeans say they shop once a month from Shein, Temu and AliExpress,” Virkkunen said.
AliExpress rejected the Commission’s decision, describing the fine as 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,” the company said in an email.
“We are carefully reviewing the decision and considering all available options.”
The Commission said AliExpress must submit an action plan by October 20, 2026, outlining how it will address the identified failures. Regulators will review the plan before deciding whether further measures are required.
If the company fails to comply, AliExpress could face additional penalties.
The European Commission began investigating AliExpress in March 2024 over possible breaches of the Digital Services Act, including issues around product safety, transparency, advertising systems, seller traceability and content moderation.
The regulator later accepted some commitments from the platform in June 2025 but continued examining issues linked to illegal product risks.
The €550 million penalty is higher than previous DSA fines issued against other major platforms, including Elon Musk’s X and Temu.
Discover more from Tech | Business | Economy
Subscribe to get the latest posts sent to your email.
