The European Commission has fined AliExpress €550 million for breaching the Digital Services Act (DSA), concluding that the marketplace failed to take adequate measures against the sale of illegal products. It is the highest fine imposed under the DSA so far. As a designated 'very large online platform', AliExpress was required to assess and mitigate the risk that illegal products spread through its service. According to the Commission, it fell short on both counts.
Over-Reliance on Automation and Insufficient Human Moderation
The central finding is over-reliance on automation. The Commission says AliExpress leaned heavily on an automated moderation system without properly evaluating how well it detected illegal listings. Because the company never measured the gap, it kept too few human moderators to catch what the software missed. Counterfeit goods, unsafe toys and dangerous cosmetics slipped past detection. Even when flagged, illegal products often remained online for weeks. Sellers could evade checks entirely by listing illegal products in categories subject to lighter moderation. This case echoes the autonomous AI agent that breached Hugging Face, where safety guardrails blocked defenders instead of attackers.
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Second Major DSA Fine Against a Chinese-Owned Marketplace
This penalty is the second major DSA fine against a Chinese-owned marketplace this year. In May, the Commission fined Temu €200 million for the same failure to keep illegal products off its platform. The Commission's crackdown signals a tougher stance on e-commerce giants that neglect consumer safety. Interestingly, a recent study shows AI confidence drops 17 points in six months, suggesting that IT leaders who lose trust are more likely to succeed in governance.
AliExpress Disputes the Decision and Must Submit an Action Plan
AliExpress disputes the decision, calling the fine disproportionate. The company argues that it has invested significant resources in risk assessment, product safety and consumer protection since the DSA took effect. It says it cooperated constructively and made voluntary commitments. Now it is studying the decision and considering all options, including an appeal. The Commission has given AliExpress until October 20 to submit an action plan outlining corrective measures. If approved, a deadline for implementation will be set. Brussels warns that further penalties can follow if AliExpress does not comply.
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The Digital Services Act is a landmark regulation for digital platforms. Learn more on the Wikipedia page.
