The European Commission has imposed a fine of 550 million euros, approximately $629 million, on Chinese online marketplace AliExpress. The penalty was issued due to the platform’s insufficient efforts to control the sale of unsafe and counterfeit products on its site. This is the largest fine ever issued for breaches of the European Union’s Digital Services Act.
The fine follows a similar penalty earlier this year, when online retailer Temu was fined 200 million euros. Additionally, last year saw a $120 million fine levied against Elon Musk’s social media platform, X. Henna Virkkunen, the commission’s executive vice-president, emphasized that the presence of counterfeit and unsafe products online is unacceptable. She stated this failure stems from AliExpress not adhering to the Digital Services Act’s requirements.
“The spread of counterfeit clothing, unsafe toys, dangerous cosmetics, and other illegal and harmful products is not an unavoidable cost of shopping online. It is a failure by AliExpress to comply with its obligations under the Digital Services Act,” said Virkkunen.
AliExpress responded via an emailed comment to The Associated Press. The company stated it is committed to meeting DSA obligations, having invested significantly in risk assessments, product safety, and consumer protection. They disagree with the fine, citing it as disproportionate and not reflective of their efforts. The company is reviewing the decision and considering its options.
The commission’s fine covers conduct by AliExpress up until June 2025, when it issued a preliminary finding that the company was not adequately addressing the sale of illegal products under the DSA. AliExpress is now required to submit an action plan by October 20, detailing measures to address these systemic risks.
The Digital Services Act aims to ensure user safety online and prevent the spread of harmful or illegal content. It also seeks to protect Europeans’ rights, including privacy and free speech.
This announcement also follows news that AliExpress’ parent company, Alibaba, plans to pay $600 million to the U.S. government. This settlement addresses allegations that the company sold and imported illegal pharmaceuticals and related equipment into the United States.
Leave a Reply