Brussels fined AliExpress 550 million for allowing sale of banned products

The European Commission has fined Chinese e-commerce platform AliExpress 550 million euros for failing to adequately address the sale of illegal products on its platform. The decision was announced on Monday, July 20, 2026, following more than two years of investigation into the company’s compliance with the Digital Services Act (DSA). The fine comes after the Commission found that AliExpress had not fulfilled its obligations under the regulation, which requires platforms to evaluate and mitigate risks associated with illegal or harmful goods sold on their services. AliExpress, based in China, has until October 20 to submit a corrective action plan to the European Executive Committee. This plan must include measures aimed at assessing and reducing systemic risks linked to its operations. If the company fails to comply or if the proposed plan is deemed insufficient, further penalties could follow. The fine marks one of the largest levied under the DSA so far, surpassing previous cases involving other major tech firms. According to the Commission, AliExpress violated its responsibilities by not having sufficient staff to review products listed on its platform. It was noted that the number of moderators employed did not match the volume of content requiring oversight. Additionally, the system used to identify fraudulent items failed to consistently flag articles that were repeatedly uploaded with similar formats. The platform's recommendation and advertising systems were also criticized, as they allowed dangerous products to be promoted even before being removed from sale. Another key issue identified during the investigation was the continued availability of illegal or hazardous products on the platform for weeks after detection. For example, cosmetics and toys that posed health risks remained for sale despite being flagged. Furthermore, AliExpress did not impose appropriate sanctions on sellers who violated rules regarding prohibited items and sometimes allowed such vendors to remain active even after repeated violations. The platform also lacked adequate controls to prevent illegal items from bypassing monitoring through incorrect product categorization. The case originated in March 2024, when the European Commission launched a formal investigation against AliExpress over its role in enabling the sale of potentially harmful goods, including counterfeit medications and dietary supplements, as well as the purchase of explicit materials by minors. During the probe, authorities also examined the lack of measures to prevent the spread of illegal content and other irregular practices, such as hidden links or allowing influencers to promote restricted or dangerous items. Among the three fines issued under the DSA to date, the penalty against AliExpress stands as the highest. Previous cases included fines imposed in May 2026 for similar violations by other platforms. The Commission emphasized that the proliferation of counterfeit clothing, unsafe toys, and harmful cosmetics should not be considered an unavoidable consequence of online shopping, but rather a breach of AliExpress’s obligations under the DSA. The investigation revealed that AliExpress’s systems were not equipped to handle the scale of illicit activity occurring on its platform. The failure to implement effective moderation tools and to enforce policies against illegal sales has led to widespread concern among regulators and consumer advocates. As the deadline approaches for AliExpress to provide its corrective plan, the outcome will determine whether the company can meet the stringent requirements set by the European Union.