EU Fines AliExpress a Record €550 Million Over Counterfeit and Unsafe Products

The European Commission has imposed a record €550 million (approximately US$629 million) fine on Chinese e-commerce platform AliExpress for allowing the sale of counterfeit and potentially harmful products within the European Union (EU). It is the largest financial penalty issued so far under the bloc's Digital Services Act (DSA).

According to EU technology regulators, AliExpress failed to prevent the widespread sale of counterfeit clothing, unsafe toys, hazardous cosmetics, and other illegal products on its marketplace. The Commission concluded that the platform had not fulfilled its obligations under the Digital Services Act to adequately manage risks posed to consumers.

Audits and investigations found that the company lacked sufficient review capacity and dedicated personnel to effectively detect and remove illegal or dangerous products. Regulators also noted that, even after official warnings were issued, it often took several weeks for millions of unsafe products to be removed from the platform.

AliExpress is owned by Chinese technology giant Alibaba Group. The European Commission stated that the sheer size of a digital marketplace cannot be used as an excuse for failing to protect consumers. Earlier this year, in May, the Commission also fined another Chinese e-commerce platform, Temu, US$232 million under the same legislation.

AliExpress has rejected the record fine, describing it as disproportionate and overly severe. In a statement, the company said it has made significant investments in improving customer safety, strengthening risk management systems, and modernising its compliance procedures. It added that it is carefully reviewing the Commission's decision and is considering an appeal along with other available legal options.

//DBTech/BMT/OR//