The European Union has issued a record €550 million ($629 million) penalty against Chinese online marketplace AliExpress, concluding that the platform did not meet its legal responsibilities to tackle illegal, counterfeit, and unsafe products sold to consumers across the bloc.
The decision follows a lengthy investigation by the European Commission, which found that AliExpress failed to properly assess and reduce the risks posed by products offered through its marketplace. Officials said the shortcomings exposed millions of European consumers to items that should not have been available for sale.
Investigation Found Weak Product Controls
According to the Commission, investigators identified major weaknesses in the platform’s systems for detecting illegal listings. Products that should have been removed often remained available for extended periods, while enforcement against repeat offenders was found to be insufficient.
Authorities said the platform did not consistently identify or remove prohibited goods, allowing counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal products to continue reaching consumers. The Commission argued that online marketplaces of AliExpress’s size are required to maintain effective safeguards under the EU’s Digital Services Act (DSA).
EU technology chief Henna Virkkunen said the widespread availability of illegal products on the platform reflected a failure to comply with the obligations imposed by the DSA rather than an unavoidable consequence of online retail.
AliExpress Rejects the Decision
AliExpress, which is owned by Alibaba Group, said it disagrees with the Commission’s conclusions and described the financial penalty as disproportionate.
The company stated that it has invested heavily in strengthening its risk management systems and improving marketplace safety. It added that it intends to challenge the decision through the legal process.
A Landmark Enforcement Action
The €550 million penalty is the largest fine imposed so far under the European Union’s Digital Services Act, legislation designed to hold major online platforms accountable for illegal content and unsafe products available through their services.
The Commission said AliExpress had been given opportunities to improve its compliance during the investigation, but concluded that the company’s measures did not adequately address the identified risks. Officials have also instructed the platform to submit a comprehensive compliance plan outlining how it will meet its legal obligations going forward.
Why the Case Matters
AliExpress is one of the largest Chinese online marketplaces operating in Europe, with around 193 million users across the European Union. The case signals the EU’s willingness to use its regulatory powers against major digital platforms that fail to protect consumers from illegal or unsafe products.
The ruling also reinforces broader efforts by European regulators to increase oversight of large online marketplaces as cross-border e-commerce continues to expand. Recent enforcement actions have similarly targeted other major technology and e-commerce companies under the bloc’s digital regulations.
What Comes Next
AliExpress is expected to pursue an appeal against the record fine while simultaneously working to address the Commission’s compliance requirements. European regulators will continue monitoring the platform’s response, with further action possible if the company fails to satisfy its obligations under the Digital Services Act.
