BRUSSELS - The European Union has hit Alibaba's AliExpress with a record €550 million, or $629 million, fine for failing to stop the sale of illegal, unsafe, and counterfeit products on its platform. This is the third penalty issued under the EU's Digital Services Act, which holds large online platforms responsible for policing harmful content.
The Commission ruled that AliExpress did not properly assess the risks of illegal product dissemination. It found the platform's moderation systems were ineffective, leaving counterfeit goods, dangerous toys, and harmful cosmetics online for weeks. The regulator also noted that the company's penalty system allowed offending sellers to continue operating.
EU Tech Chief Henna Virkkunen stated the situation is "very dangerous for consumers." She highlighted that AliExpress has 193 million users in Europe, compared to 156 million for Shein and 130 million for Temu, both of which also face regulatory action.
The fine is significantly larger than penalties recently levied against Elon Musk's X platform and Temu. Officials said the penalty could have been higher but was reduced due to the novelty of the DSA rules. AliExpress faces additional consequences if proposed fixes are deemed inadequate by December.