The European Union has imposed a record €550 million (£467 million) fine on Chinese online retail giant AliExpress for failing to prevent the sale of illegal, counterfeit and unsafe products on its platform.
The penalty, announced by the European Commission, is the largest ever issued under the EU’s Digital Services Act (DSA), underscoring the bloc’s tougher stance on online marketplace accountability.
AliExpress, owned by Alibaba Group, has rejected the decision, describing the fine as “disproportionate” and confirming it will appeal.
The sanction follows a two-year investigation which concluded that AliExpress failed to adequately assess and manage the risks posed by illegal goods sold through its marketplace.
According to the European Commission, the platform’s detection systems were ineffective, allowing counterfeit clothing, unsafe toys, dangerous cosmetics and other prohibited products to remain available for purchase.
Investigators found that:
- Many illegal products were never detected.
- Some items flagged by the platform remained on sale for several weeks.
- Sanctions against sellers of illegal goods were poorly enforced.
- Product safety verification systems could be easily bypassed.
EU Executive Vice-President for Tech Sovereignty, Security and Democracy, Henna Virkkunen, said consumers should not have to accept unsafe products as the price of shopping online. “The spread of counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal and harmful products is not an unavoidable cost of shopping online, it is a failure by AliExpress to comply with its obligations.”
The Digital Services Act, which came into force to strengthen online consumer protection, requires very large online platforms to identify, assess and mitigate risks associated with illegal content and products.
Although the legislation permits fines of up to 6 per cent of a company’s global annual turnover, the €550 million penalty remains well below that ceiling.
Alibaba reported global revenue of approximately €122 billion last year.
AliExpress currently serves about 193 million users across the European Union, making it larger in the region than fellow Chinese e-commerce platforms Shein and Temu.
In response, AliExpress defended its compliance efforts, saying it has invested heavily in consumer protection and product safety.
The company said the Commission failed to recognise its risk management framework and the improvements already introduced to combat illegal listings.
AliExpress confirmed it will challenge the ruling through the appeals process.
Beyond paying the fine, AliExpress has been directed to submit a comprehensive compliance plan to the European Commission by 20 October, detailing the measures it will take to address the identified shortcomings and strengthen oversight of products sold on its marketplace.
The action against AliExpress is part of the European Union’s broader campaign to hold major technology companies accountable under the Digital Services Act.
Earlier this year, online retailer Temu was fined €200 million for allowing dangerous and illegal products, including unsafe baby toys, to be sold on its platform.
Last year, social media platform X was fined €120 million after regulators ruled that its paid verification system misled users by failing to properly verify account holders, increasing the risk of scams.
The latest enforcement action signals that the EU intends to aggressively police online marketplaces and require platforms to take greater responsibility for consumer safety and the sale of counterfeit or illegal goods.
