The European Commission has imposed a record €550 million ($629 million) fine on AliExpress for allowing the sale of counterfeit and harmful products within the single market. This is the largest penalty ever levied under the Digital Services Act (DSA), the EU's landmark regulation for digital platforms. The action targets the Chinese e-commerce giant owned by Alibaba, accused of failing to meet its supervisory obligations under the law.
Dangerous products found even after being flagged
Investigators discovered millions of counterfeit items, unsafe toys, and hazardous cosmetics that remained on sale despite prior reports. The Commission determined that AliExpress lacked sufficient staff for proper oversight: screening employees had only tens of seconds to decide whether a product met EU standards. This systemic failure led to the maximum penalty.
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The scale of the fine and market implications
Henna Virkkunen, Executive Vice-President for Tech Sovereignty, stated that “the spread of counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal and harmful products is a failure by AliExpress to comply with its obligations under the DSA.” The fine reflects the problem's severity and the platform's failure to take proportionate measures. Virkkunen added: “Scale is not an excuse; risks must be identified and addressed systematically to ensure consumers can safely shop online.” The case echoes the Aipas e-bike fake UL certifications scandal, where counterfeiting endangered user safety.
AliExpress response and the Temu precedent
AliExpress condemned the fine as disproportionate, without officially announcing an appeal. In a statement, the platform said: “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.” Meanwhile, in May, Temu was fined €200 million for similar violations. The EU had previously found that 65% of cosmetics, 63% of food supplements, and 60% of personal protective equipment on platforms like Shein, Temu, and AliExpress were non-compliant. The record penalty sets an important precedent for enforcing the Digital Services Act and sends a strong signal to all e-commerce platforms: consumer safety is paramount, and non-compliance will be punished decisively.
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