EU fines AliExpress €550 million over illegal and unsafe products

The European Commission has fined Chinese marketplace AliExpress €550 million ($629 million) for failing to properly address illegal, unsafe, and counterfeit products on its platform.

According to Reuters, citing the regulator's decision dated July 20, this is the largest fine issued under the EU's Digital Services Act (DSA) so far. It is also the third major DSA penalty, following fines of €120 million for Elon Musk's X and €200 million for rival marketplace Temu.

The penalty is linked to AliExpress' failure to meet its obligations under the DSA. The platform is required to systematically assess and reduce the risks associated with illegal products, but regulators found that its measures were insufficient.

The European Commission said AliExpress had too few moderators to handle the scale of its marketplace, allowing prohibited products — including unsafe toys, risky cosmetics, and counterfeit clothing — to remain available for weeks even after complaints were filed. The platform's brand verification system, designed to prevent counterfeit listings, also proved ineffective and was easily bypassed by sellers.

The regulator also identified problems with AliExpress' recommendation and advertising systems, which promoted potentially dangerous products before they were removed. Sellers violating marketplace rules were able to continue operating with limited consequences.

The fine could have been higher, but the Commission considered the relatively recent introduction of the DSA as a mitigating factor. Under the law, penalties can reach up to 6% of a company's annual global revenue.

AliExpress disagreed with the decision, calling the fine "disproportionate." The company said it has invested significant resources into risk assessment, product safety, and consumer protection since the DSA came into force, and that it is reviewing the decision while considering "all available options."

The European Commission launched its investigation into AliExpress in March 2024 and issued preliminary findings in June 2025. The company now has until October 20 to submit a plan addressing the identified issues. If regulators reject the plan, AliExpress could face further penalties.

According to European Commission Vice-President Henna Virkkunen, one in five Europeans buys products from AliExpress, Shein, or Temu at least once a month.