AliExpress hit with record €550M EU fine over unsafe goods
The European Union has issued its largest Digital Services Act penalty to date, fining AliExpress €550 million for systemic failures in policing counterfeit and dangerous products, signaling heightened financial risk for cross-border e-commerce platforms.
The European Commission imposed a €550 million fine on AliExpress on Monday, marking the largest penalty levied under the Digital Services Act. The regulator found the e-commerce platform failed to adequately assess and mitigate risks associated with the sale of illegal, counterfeit, and unsafe products.
According to the Commission, AliExpress overstated the effectiveness of its moderation systems and relied too heavily on a single performance indicator to track them. Its recommendation and advertising algorithms actively contributed to the spread of illegal goods. Dangerous cosmetic products and unsafe toys reportedly remained available on the platform for weeks before removal.
Enforcement measures against offending merchants were also criticized as ineffective, allowing sellers previously penalized for illegal activities to continue operating. The sanction far exceeds previous DSA penalties, including the €200 million fine levied against rival Temu in May and the €120 million penalty issued to X in December. For investors, the fine underscores the material financial exposure platforms face under the DSA, which allows for fines of up to 6% of global annual turnover.
AliExpress had previously avoided a financial penalty in June 2025 by agreeing to implement measures targeting illegal and pornographic content. EU technology chief Henna Virkkunen highlighted the competitive distortion caused by non-compliance. “This is very dangerous for consumers, unfair for companies which are complying with all our rules,” she said.
Virkkunen noted AliExpress commanded a leading user base in Europe last year, reaching 193 million users compared to 156 million for Shein and 130 million for Temu. AliExpress pushed back against the ruling, calling the penalty excessive. “We disagree with today’s decision and the disproportionate fine, which does not adequately reflect our established framework and the significant, proactive enhancements we have made,” the company stated.
The company is currently reviewing the ruling and considering legal action. The penalty reflects a broader global regulatory crackdown on marketplace governance, with Nigeria’s data protection commission recently opening an investigation into Temu over the handling of personal data belonging to 12.7 million citizens.
