AliExpress Faces Largest Penalty Under EU’s Digital Services Act

The European Commission has imposed a significant fine on AliExpress, a popular e-commerce platform, for violating the Digital Services Act (DSA) rules. The platform has been hit with a €550 million (approximately $629 million) fine for failing to prevent the sale of illegal, unsafe, or counterfeit products on its platform.

The European Commission’s ruling highlights the company’s failure to take effective measures to reduce the dissemination of illegal products. It was noted that AliExpress allocated insufficient staff to verify products, which led to the sale of unsafe toys and dangerous cosmetics for multiple weeks after they were detected.

EU tech chief Henna Virkkunen emphasized that the spread of counterfeit clothing, unsafe toys, and other illegal and harmful products is not an unavoidable cost of shopping online. Instead, it is a failure by AliExpress to comply with its obligations under the Digital Services Act.

Virkkunen stated that scale is not an excuse for the risks associated with online shopping. It is essential for companies like AliExpress to identify and address these risks systematically to ensure consumers can safely shop online.

The fine imposed on AliExpress is the largest penalty ever imposed under the EU’s Digital Services Act. This is a significant setback for the company, and it now has until October 20th, 2026, to remedy the breach. Failure to do so may result in additional periodic fines.

This ruling is a significant development in the EU’s efforts to regulate online marketplaces and ensure consumer safety. The European Commission’s actions demonstrate its commitment to holding companies accountable for their actions and ensuring that consumers are protected from harm.

The fine imposed on AliExpress serves as a warning to other companies operating in the EU. It highlights the importance of compliance with the Digital Services Act and the need for companies to take effective measures to prevent the sale of illegal products on their platforms.

In related news, rival Chinese retailer Temu was also fined over $230 million in May for similar DSA infractions. This marks a significant trend in the EU’s efforts to regulate online marketplaces and ensure consumer safety.

The European Commission’s actions demonstrate its commitment to protecting consumers and ensuring that online marketplaces operate safely and fairly. The fine imposed on AliExpress is a significant step in this direction, and it serves as a reminder to companies operating in the EU to prioritize consumer safety and compliance with regulations.

In conclusion, the fine imposed on AliExpress is a significant development in the EU’s efforts to regulate online marketplaces. It highlights the importance of compliance with the Digital Services Act and the need for companies to take effective measures to prevent the sale of illegal products on their platforms.