BRUSSELS: The European Union has imposed a record €550 million (approximately $630 million) fine on Chinese e-commerce platform AliExpress, accusing the company of failing to effectively prevent the sale of illegal, counterfeit, and unsafe products across its marketplace.
According to the European Commission, an investigation found that numerous products sold on AliExpress failed to comply with the EU’s strict safety and environmental standards. These included unsafe children’s toys, cosmetics, and other consumer goods that posed potential risks to users.
EU regulators said that even after illegal products were reported, many remained available for sale for weeks. The Commission also concluded that the platform had not implemented adequate measures to combat counterfeit products or promptly remove listings that violated European regulations.
European Commissioner for Technology Henna Virkkunen said online marketplaces have a responsibility to ensure consumer safety, emphasizing that major digital platforms must identify potential risks quickly and take effective action to protect users.
The penalty is the largest fine ever imposed under the European Union’s Digital Services Act (DSA), legislation introduced in 2022 to hold major technology companies and online platforms more accountable for protecting consumers and tackling illegal online content.
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Previously, the EU fined social media platform X €120 million and online marketplace Temu €200 million under the bloc’s digital regulatory framework.
AliExpress rejected the European Commission’s decision, describing the penalty as “disproportionate.” The company said it has implemented comprehensive risk management systems and introduced multiple consumer protection reforms in recent years. It also confirmed that it plans to appeal the decision.
The European Commission stated that the amount of the fine was determined based on the seriousness of the violations, their impact on consumers, and the duration of the non-compliance.
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According to official figures, AliExpress has approximately 193 million users across the European Union, making the bloc its largest global market. Shein has around 156 million EU users, while Temu serves approximately 130 million users across the region.
