he European Union has imposed a €550 million ($629 million) fine on Chinese online marketplace AliExpress, accusing the e-commerce platform of failing to prevent the sale of illegal and counterfeit products to consumers across the bloc.
The European Commission said on Monday that AliExpress had breached the Digital Services Act (DSA) by failing to adequately assess and mitigate the risks posed by counterfeit goods, unsafe products and illegal listings on its platform. The penalty is one of the largest ever issued under the EU’s landmark online content law.
The Commission said its investigation found that AliExpress had not implemented sufficient measures to detect, remove and prevent the sale of counterfeit goods, despite repeated warnings and legal obligations requiring large online platforms to protect consumers and reduce illegal content.
EU regulators also criticised the company for shortcomings in its product monitoring systems, transparency obligations and risk assessment procedures, saying consumers remained exposed to fraudulent sellers and dangerous products.
AliExpress said it was reviewing the Commission’s decision and would consider its legal options. The company maintained that it had invested heavily in systems designed to identify counterfeit products, remove illegal listings and improve consumer protection, adding that it remained committed to complying with European regulations.
The Digital Services Act, which came into force for the EU’s largest online platforms in 2024, requires companies to swiftly remove illegal content, strengthen oversight of online marketplaces and take steps to reduce risks associated with counterfeit goods, scams and harmful products. Companies found in violation can face fines of up to 6% of their annual global turnover.
The ruling marks another major effort by the European Union to tighten oversight of global technology companies operating within the bloc. Analysts said the decision sends a strong signal that regulators are prepared to impose significant financial penalties on platforms that fail to meet their obligations under the DSA.
Consumer protection groups welcomed the decision, arguing that stronger enforcement is needed to curb the growing trade in counterfeit and unsafe products sold through online marketplaces.
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