EU Fines AliExpress €550M Over Illegal Products | DSA Record

AliExpress Hit with Record €550 Million EU Fine for Failing to Curb Illegal Product Sales

The European Commission has imposed a landmark €550 million fine on Chinese e-commerce giant AliExpress for systemic failures in preventing the sale of illegal, counterfeit, and unsafe products on its platform. This is the largest penalty ever issued under the European Union's Digital Services Act (DSA), surpassing previous fines against X (€120 million) and Temu (€200 million). The EU Digital Services Act enforcement marks a significant escalation in regulatory action against major online marketplaces.

Background: The DSA Investigation

The European Commission launched an investigation into AliExpress in March 2024, classifying the platform as a Very Large Online Platform (VLOP) due to its over 45 million monthly active users in the EU. Under the DSA, VLOPs face strict obligations to assess and mitigate systemic risks, including the spread of illegal content and products. The investigation, which ran until June 2025, uncovered widespread violations spanning 2023, 2024, and 2025.

Key findings from the investigation revealed that millions of products previously flagged by AliExpress itself as illegal—including dangerous toys, counterfeit branded clothing, and hazardous cosmetics—were repeatedly relisted on the platform. Content moderators were given as little as "tens of seconds" to review each flagged item, far below the time needed for proper assessment. The Commission determined that AliExpress employed insufficient staff to effectively identify and remove illegal products.

Record-Breaking Penalty Under the DSA

The €550 million fine represents the highest DSA penalty to date, though it remains well below the maximum possible sanction of 6% of global annual turnover. Alibaba Group, AliExpress's parent company, reported an annual revenue of approximately €130 billion at the time of the violations, meaning the maximum fine could have reached nearly €8 billion. The fine was set based on the nature, gravity, and duration of the infringements.

European Commissioner for Tech Sovereignty, Henna Virkkunen, stated: 'The spread of counterfeit clothing, unsafe toys, dangerous cosmetics, and other illegal and harmful products is not an inevitable consequence of online shopping. It is a failure by AliExpress to comply with European rules.' She added: 'Scale is not an excuse. Risks must be identified and addressed so that customers can shop safely online.'

Comparison with Previous DSA Fines

The table below compares the three major DSA fines imposed to date:

Systemic Failures and Enforcement Timeline

The Commission found that AliExpress's moderation and compliance systems were fundamentally inadequate. Sellers could easily circumvent safeguards by miscategorizing products, and the platform's recommendation algorithms inadvertently promoted illegal goods. Despite being ordered to comply with DSA rules by June 2025, AliExpress failed to implement necessary changes.

The company must now submit a comprehensive action plan by the end of October 2026 to remedy its DSA breaches. Failure to comply could result in additional fines or even temporary suspension of services in the EU. The EU's regulatory crackdown on Big Tech is intensifying as Brussels continues to enforce the DSA framework.

AliExpress Response and Next Steps

AliExpress has called the fine "disproportionate" and argued that the Commission did not adequately consider improvements the company had already implemented. In a statement, the company said it is reviewing the decision and keeping all options open, including a potential appeal. The fine comes amid broader scrutiny of Chinese e-commerce platforms in Europe, with Shein and Temu facing similar investigations over product safety and consumer protection issues.

Impact on E-Commerce and Consumer Safety

The record penalty sends a strong signal to all online marketplaces operating in the EU. Under the DSA, platforms bear significant responsibility for the products sold by third-party merchants on their sites. The Commission's aggressive enforcement is expected to force major changes in how platforms moderate content and vet sellers. For consumers, the ruling reinforces protections against counterfeit and dangerous goods purchased online.

Frequently Asked Questions

What is the Digital Services Act (DSA)?

The DSA is a landmark EU regulation that imposes strict obligations on digital platforms to combat illegal content, protect user rights, and ensure transparency. Very Large Online Platforms face the highest level of scrutiny.

Why was AliExpress fined €550 million?

AliExpress was fined for systemic failures to prevent the sale of illegal, counterfeit, and unsafe products on its platform, violating DSA obligations to assess and mitigate risks. The fine covers violations from 2023 to 2025.

How does this compare to other DSA fines?

The AliExpress fine of €550 million is the largest DSA penalty to date, surpassing fines against X (€120 million) and Temu (€200 million). The maximum possible fine could have reached 6% of Alibaba's global turnover, approximately €8 billion.

What happens next for AliExpress?

AliExpress must submit a compliance action plan by October 2026. The company has indicated it may appeal the fine. If it fails to comply, additional penalties or service restrictions could follow.

How will this affect consumers?

The ruling strengthens consumer protections by holding platforms accountable for product safety. Shoppers can expect better enforcement against counterfeit and dangerous goods on major e-commerce sites.

Sources

Information for this article was sourced from the European Commission, Reuters, Ars Technica, Euractiv, and the NOS report.