The European Union has issued a €550 million fine against the e-commerce platform AliExpress following an investigation into the sale of illegal products that failed to comply with the bloc's environmental and safety regulations. Launched in March 2024, the probe concluded that the platform struggled to prevent the circulation of prohibited items, with many illegal goods remaining active on the site or being recommended to users before removal. Officials noted that the platform's systems for detecting and deleting these products were consistently overestimated in their effectiveness, leading to millions of items reappearing after they were initially flagged.
This penalty represents the largest fine ever imposed under the EU's Digital Services Act (DSA), a regulatory framework introduced in 2022 to govern major technology companies. EU tech chief Henna Virkkunen stated that the action serves as a mandate for the platform to address systemic risks to ensure consumer safety. While the fine is significant, it remains well below the maximum potential penalty of six percent of the total worldwide annual turnover of Alibaba, the parent company of AliExpress, which reported a global turnover of €122 billion last year. The EU said the fine's amount took into consideration the nature of the violations, the impact on Europeans and the duration of the infringements.
AliExpress, which stands as the largest Chinese e-commerce platform in the EU with 193 million users, criticized the fine as "disproportionate." In a formal statement, the company argued that the decision failed to reflect its established internal frameworks or the proactive enhancements it has implemented. The firm indicated it is currently reviewing all available options in response to the ruling.
Despite the criticism, the European Commission noted that AliExpress has been cooperating actively throughout the process. The platform is now required to pay the fine and submit a comprehensive plan to the EU by October 20, detailing the specific actions it will take to rectify the identified breaches. Failure to comply with these requirements could result in additional periodic penalty payments. While the EU has recently increased scrutiny on Chinese retailers—including the implementation of a €3 levy on cheap parcels—Virkkunen maintained that the enforcement is not based on a platform's country of origin, citing ongoing investigations into various companies from the United States, Europe, and China. The DSA is part of a strengthened legal weaponry to rein in what the EU views as Big Tech's excesses, and fines can go as high as six percent of a company's total worldwide annual turnover.
Elon Musk's X social media platform received a €120-million fine in December last year, while the EU slapped e-commerce giant Temu with a €200-million fine in May.
Those selling illegal goods were still able to remain active on AliExpress.
