The European Union has imposed a record fine of $629 million on AliExpress for failing to prevent the sale of illegal and counterfeit products on its platform.
The European Union (EU) has fined AliExpress, owned by Alibaba, a staggering €550 million (approximately $629 million) for its failure to adequately prevent the sale of illegal, unsafe, and counterfeit products on its online marketplace. This penalty marks the largest fine issued to date under the EU’s Digital Services Act (DSA).
The European Commission announced that AliExpress did not sufficiently assess or mitigate the risks associated with illegal products sold on its platform. As a result, counterfeit goods, unsafe toys, and dangerous cosmetics remained accessible to consumers for extended periods.
Henna Virkkunen, European Commission Executive Vice President for Tech Sovereignty, Security, and Democracy, emphasized the dangers posed to consumers and the unfairness to compliant businesses. She noted that AliExpress had approximately 193 million users in Europe last year, highlighting the importance of its adherence to EU digital regulations.
The Commission criticized AliExpress for underestimating the risks associated with illegal products and overestimating the effectiveness of its systems designed to detect and remove prohibited listings. Additionally, regulators pointed out that the platform’s recommendation and advertising systems inadvertently increased the visibility of illegal products.
According to the Commission, AliExpress’s “brand authorization” program, which was intended to prevent the sale of counterfeit goods, was ineffective and understaffed. The program was easily circumvented by sellers offering fake merchandise. Furthermore, the investigation revealed that businesses penalized for selling illegal products often continued to operate on the platform.
This fine follows a preliminary finding in June 2025, which indicated that AliExpress had breached the DSA by failing to adequately address systemic risks linked to illegal products. The company has until October 20 to submit an action plan detailing additional measures to comply with EU regulations. The Commission has warned that further penalties could be imposed if regulators determine in December that the company’s remedial actions are insufficient.
In response to the fine, AliExpress announced its intention to appeal the decision, labeling the penalty as disproportionate. The company stated, “Today’s decision and disproportionate fine ignores our sound risk management framework and the significant, proactive enhancements we have made.” AliExpress also emphasized its collaboration with the Commission to meet evolving expectations.
The €550 million fine surpasses previous penalties, including a €200 million fine imposed on the Chinese e-commerce platform Temu earlier this year and a €120 million penalty against Elon Musk’s social media platform X last year. This makes it the largest sanction issued under the DSA since its implementation.
The DSA was enacted to enhance online consumer protections across the European Union, requiring large online platforms to actively identify and mitigate risks related to illegal content and products while increasing transparency in their operational systems.
The action against AliExpress highlights the EU’s increasingly stringent enforcement of digital regulations as Brussels intensifies scrutiny of major online marketplaces, particularly those operated by Chinese e-commerce platforms within the bloc.
According to The American Bazaar, this significant fine reflects the EU’s commitment to ensuring safer online shopping environments for consumers.