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The European Union has fined Chinese e-commerce giant AliExpress €550 million ($629 million) for failing to curb the sale of illegal, unsafe and counterfeit products on its marketplace, handing down the largest fine yet under the bloc's Digital Services Act.
The European Commission concluded that the online retailer did not properly assess or reduce the risks linked to illegal listings, including unsafe toys, dangerous cosmetics and counterfeit goods. Alongside the financial penalty, regulators ordered the company to take corrective action, according to a statement on Monday.
"Risks must be identified and addressed systematically to ensure consumers can safely shop online. Today, we are holding AliExpress to this standard and request it to take action," Executive Vice-President for Tech Sovereignty, Security and Democracy Henna Virkkunen said.
The Commission found that AliExpress overstated the effectiveness of its systems for detecting and removing illegal products while failing to assign enough moderators to review suspicious listings.
Investigators also concluded that its recommendation and advertising systems helped spread illegal products, while weak risk assessments failed to measure whether moderation efforts prevented them from reappearing.
Regulators also found that counterfeit goods, unsafe toys and dangerous cosmetics often remained online for weeks after being detected. Traders continued operating despite penalties, while weak product checks allowed sellers to bypass compliance rules by misclassifying listings.
AliExpress has until Oct. 20, 2026, to submit an action plan outlining how it will address the breaches. The European Board for Digital Services will review the proposal before the Commission issues its final decision. Failure to comply could lead to additional periodic penalty payments, the statement added.
The Digital Services Act (DSA) is the European Union's flagship law for regulating online platforms. It requires major digital services to assess and reduce systemic risks, remove illegal content and products more effectively, improve transparency around algorithms and advertising, and better protect consumers.
Companies that breach the rules can face fines of up to 6% of their global annual turnover.
The penalty follows a €200 million fine imposed on Chinese marketplace Temu in May 2026 for failing to properly assess and mitigate the risks posed by illegal products on its platform, and a €120 million penalty against social media platform X in December 2025 over breaches of the DSA's transparency rules, including its paid verification system, advertising repository and researcher data access.
The European Commission is also continuing investigations into other major platforms, including Shein, as Brussels intensifies scrutiny of large online marketplaces and social media companies under the DSA.
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