AliExpress fined €550m under EU Digital Services Act for unsafe and counterfeit goods

AliExpress has been fined €550m by the European Commission for failing to prevent the sale of illegal, unsafe and counterfeit products on its platform, the Commission said on the conclusion of a two-year investigation.

The Commission found that AliExpress’s detection systems did not function properly, with many illegal items not flagged and some flagged items remaining available for several weeks. Investigators also determined that penalties for traders selling illegal goods were not properly enforced and that product compliance checks could be easily circumvented.

Henna Virkkunen, the Commission’s Executive Vice President for Tech Sovereignty, Security and Democracy, said scale is not an excuse for selling dangerous or illegal goods and described the spread of counterfeit clothing, unsafe toys and hazardous cosmetics as a failure by AliExpress to meet its obligations under the Digital Services Act.

AliExpress, owned by Alibaba, said it disagreed with the decision and described the fine as disproportionate, noting that it has implemented significant enhancements to its processes. The company said it is reviewing the decision and considering available options.

The penalty is the largest imposed under the Digital Services Act so far. AliExpress must pay the fine and submit a plan to the EU by 20 October detailing the actions it will take to address the breaches.

Liberal News Analysis: What Does This Development Mean?

The Commission’s investigation lasted two years and concluded that AliExpress’s systems and enforcement mechanisms failed to meet the diligence obligations set by the Digital Services Act. The fine is the highest issued under the Act to date and follows earlier penalties for other platforms.

Quick Glance: What You Need to Know

• AliExpress fined €550m by the European Commission for allowing illegal, unsafe and counterfeit products.
• Investigation found detection systems failed, flagged items often remained listed, and penalties were not properly enforced.
• AliExpress disputes the decision, must pay the fine and submit a remediation plan by 20 October.