EU Fines AliExpress Record €550 Million Under Digital Services Act
The European Commission has penalized Chinese e-commerce platform AliExpress a record €550 million, equivalent to $629 million, for breaching the Digital Services Act by permitting the sale of counterfeit apparel, unsafe toys, and hazardous cosmetics. AliExpress, a subsidiary of Alibaba serving 193 million European users, called the penalty disproportionate and intends to appeal the decision.
Key points
- The European Commission fined Chinese e-commerce giant AliExpress a record €550 million, or approximately $629 million, for regulatory breaches.
- Investigators discovered millions of illegal items, including counterfeit clothing, unsafe toys, and dangerous cosmetics, remaining accessible on the platform.
- EU tech chief Henna Virkkunen stated that the company failed to meet its legal obligations under the Digital Services Act to protect consumers.
- The two-year investigation revealed that AliExpress lacked adequate oversight staff, with screening personnel given only tens of seconds to review items.
- AliExpress, which is owned by Alibaba and has 193 million European users, criticized the penalty as disproportionate and announced plans to appeal.
The European Commission has issued a record €550 million, or $629 million, penalty against AliExpress for failing to prevent the distribution of illegal and hazardous merchandise. Regulators concluded that the Chinese retail platform violated the Digital Services Act by allowing millions of counterfeit garments, unsafe toys, and dangerous cosmetics to be sold to consumers across the bloc.
The investigation, which commenced in March 2024, determined that detection mechanisms were inadequate and that flagged listings frequently remained active for weeks. Officials noted that screening personnel often spent merely seconds evaluating whether products met European standards, while traders offering illicit goods faced insufficient penalties.
Henna Virkkunen, the European Commission's Executive Vice-President, emphasized that the lack of diligence endangers consumers and places compliant businesses at an unfair disadvantage. This penalty represents the largest financial sanction imposed to date under the Digital Services Act.
AliExpress, operated by Chinese technology conglomerate Alibaba and utilized by 193 million individuals in Europe, disputed the findings. Representatives for the platform described the enforcement action as disproportionate and confirmed that the company will pursue an official appeal.
Sources
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