European Commission Fines AliExpress for Unsafe Products

The European Commission has imposed a substantial fine of 550 million euros ($629 million) on AliExpress, a Chinese online marketplace. The penalty arises from the company’s failure to sufficiently address the sale of unsafe and counterfeit products on its platform. This fine represents the largest ever under the European Union’s Digital Services Act.

This action follows a similar penalty of 200 million euros levied against another online retailer, Temu, earlier this year for comparable offenses. Last year, a $120 million fine was imposed on Elon Musk’s social media platform, X, by Brussels.

Henna Virkkunen, the commission’s executive vice-president for tech sovereignty, security, and democracy, emphasized the importance of compliance. She stated, “The spread of counterfeit clothing, unsafe toys, dangerous cosmetics, and other illegal and harmful products is not an unavoidable cost of shopping online. It represents a failure by AliExpress to adhere to the Digital Services Act.” She further noted that companies must identify and mitigate risks systematically to ensure consumer safety online.

AliExpress responded to the fine by expressing its commitment to compliance with the Digital Services Act since its enactment. The company highlighted its investment in risk assessment, product safety, and consumer protection. It described the fine as “disproportionate” and not reflective of its efforts to improve.

The Commission’s decision pertains to the company’s conduct up to June 2025. A preliminary ruling had indicated that AliExpress was not adequately addressing the sale of illegal products as per the Act. The company accepted commitments to enhance its systems and now has until October 20 to submit an action plan to remedy the breach.

The Digital Services Act aims to protect users by preventing the spread of harmful content and safeguarding fundamental rights, such as privacy and free speech. The Act particularly focuses on content that is illegal or violates a platform’s terms of service.

This development coincides with Alibaba, the operator of AliExpress, agreeing to pay $600 million to settle a dispute with the U.S. government. The dispute involved allegations of Alibaba selling and importing illegal pharmaceuticals and substances into the U.S.