EU hits AliExpress with €550m fine over illegal products

The European Union has imposed a record €550 million fine on Alibaba’s AliExpress for allowing illegal, unsafe, and counterfeit products to remain on its platform. The ruling, announced on Monday, marks the third major fine issued by the European Commission under the Digital Services Act (DSA). The DSA mandates that very large online platforms must take stronger steps to identify and remove harmful or illegal content. The case against AliExpress began in June 2025, when the European Commission accused the e-commerce giant of failing to meet key requirements under the DSA. Specifically, the regulator claimed AliExpress did not properly assess the risks associated with the sale of illegal goods and failed to implement effective mitigation strategies. A deadline of 20 October 2025 was set for AliExpress to submit proposed remedies, with the possibility of additional penalties if compliance was not achieved by December 2025. EU technology commissioner Henna Virkkunen emphasized the dangers posed by the continued presence of illegal products on AliExpress. “This is very dangerous for consumers, unfair for companies which are complying with all our rules,” she stated during a press briefing. She highlighted the scale of AliExpress’ user base in Europe, noting that it had 193 million users last year compared to Shein’s 156 million and Temu’s 130 million. Both Shein and Temu have faced fines under the DSA, though Temu’s case is still under investigation. AliExpress responded to the fine by calling it “disproportionate.” In an emailed statement, the company argued that the decision did not accurately reflect its existing frameworks or the substantial improvements it had already implemented. It expressed its intention to carefully review the ruling and consider all possible responses. The European Commission criticized several aspects of AliExpress’ operations. It noted that the company had not adequately assessed whether it had sufficient personnel to evaluate the risks of illegal product listings. Additionally, the regulator found that AliExpress had overestimated the effectiveness of its detection systems. The recommender and advertising algorithms were identified as contributing to the spread of illegal items, while the company’s reliance on a single quantitative metric to measure moderation efforts was deemed inadequate. Illegal products such as counterfeit goods, unsafe toys, and dangerous cosmetics were found to remain on the platform for extended periods due to AliExpress’ failure to detect them. The commission also raised concerns about the company’s penalty policy, which allowed repeat offenders to continue selling prohibited items. The mandatory “brand authorisation” system, designed to block counterfeit sales, was described as ineffective and understaffed, making it easy for sellers to bypass the safeguards. The fine represents a notable increase compared to previous DSA-related penalties. It surpasses the €120 million fine levied against Elon Musk’s social media platform X in December 2025 and exceeds the €200 million penalty imposed on Temu earlier this year. While AliExpress previously avoided a potential fine of up to 6% of its global annual turnover in June 2025 by agreeing to improve its handling of illegal and pornographic content, the latest ruling indicates that the company’s actions fell short of regulatory expectations. As the situation develops, it remains unclear how AliExpress will respond beyond its current statement. The company may seek legal recourse or attempt to negotiate a settlement. Meanwhile, the European Commission continues to monitor the implementation of corrective measures and may take further action if necessary.