EU Fines AliExpress 550 Million Euros Over Unsafe and Counterfeit Goods

The European Commission has fined the online marketplace AliExpress 550 million euros (approximately $629 million) for failing to adequately crack down on the sale of unsafe and counterfeit products on its platform. This penalty marks the largest fine ever imposed for breaches of the European Union's Digital Services Act (DSA).

The commission stated that the spread of counterfeit clothing, unsafe toys, dangerous cosmetics, and other harmful products online is not an unavoidable consequence of e-commerce but a failure by AliExpress to meet its obligations under the DSA. "Scale is not an excuse; risks must be identified and addressed systematically to ensure consumers can safely shop online," said Henna Virkkunen, the commission's executive vice-president for tech sovereignty, security and democracy.

AliExpress, operated by Chinese tech giant Alibaba, said in a statement that it disagreed with the "disproportionate fine" and is carefully reviewing the decision and considering all available options. The company added that it has invested substantial resources in risk assessment, mitigation, product safety, and consumer protection since the DSA came into force.

The fine addresses the company's conduct up to at least June 2025. The commission issued a preliminary ruling against AliExpress in June, finding that the platform was not doing enough to tackle illegal products. AliExpress was given until Oct. 20 to submit an action plan outlining measures to address the breach of its obligations to assess and mitigate systemic risks.

The Digital Services Act aims to enhance online safety within the EU by curbing the spread of illegal and harmful content and protecting users' fundamental rights. The ruling against AliExpress follows recent fines imposed on other online platforms, including Temu, which was fined 200 million euros, and X (formerly Twitter), which received a $120 million penalty.

Separately, AliExpress' operator, Alibaba, announced in early October that it would pay $600 million to resolve a dispute with the U.S. government concerning allegations of selling and importing illegal pharmaceuticals, controlled substances, and related equipment into the United States.