The European Union on Monday imposed a 550-million-euro ($630 million) fine on online marketplace AliExpress, accusing the platform of allowing the sale of illegal products, including unsafe toys and cosmetics.
EU regulators said AliExpress also failed to take adequate action against counterfeit goods, noting that even after illegal products were identified, many remained available for sale for several weeks.
The findings came after an investigation launched in March 2024, which concluded that some products sold on the platform did not comply with the bloc’s strict environmental and consumer safety standards.
“Risks must be identified and addressed systematically to ensure consumers can safely shop online. Today, we are holding AliExpress to this standard and request it to take action,” EU technology chief Henna Virkkunen said in a statement.
The penalty is the largest ever issued under the European Union’s Digital Services Act (DSA), the landmark legislation introduced in 2022 to regulate major technology platforms.
Previously, social media platform X was fined 120 million euros in December last year, while online retailer Temu received a 200-million-euro penalty in May.
AliExpress criticised what it described as a “disproportionate” fine, saying in an updated statement that the EU’s decision “ignores our sound risk management framework and the significant, proactive enhancements we have made”.
The company added that it intends to appeal the ruling.
The European Commission said the size of the fine reflected the seriousness of the violations, their impact on European consumers and the length of time the breaches continued.
AliExpress is the largest Chinese e-commerce platform operating in the European Union, with around 193 million users. Asian online fashion retailer Shein has approximately 156 million users in the bloc, while Temu has about 130 million.
A senior European official said the EU remains AliExpress’ biggest market.
Under the Digital Services Act, the world’s largest online platforms, including social media companies and e-commerce marketplaces, are required to assess the risks posed by their services and implement measures to reduce harm to consumers.
