AliExpress fined 550 million euros by EU for failing to curb illegal products

AliExpress faces a hefty 550 million euro fine from the European Commission for its inadequate efforts against illegal, unsafe, and counterfeit goods. The platform allowed such items, including fake products, dangerous cosmetics, and unsafe toys, to remain available for weeks even after detection by its own systems. This violation of the Digital Services Act (DSA) marks the largest penalty imposed under the regulation to date.

The e-commerce giant has until October 2026 to present a comprehensive action plan to rectify these issues. The fine is a significant component of the EU's intensified scrutiny of Chinese online retailers, following a similar 200 million euro penalty against Temu earlier this year and a new import duty on low-value goods from China implemented in July.

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Companies often appeal and that ends up before European judges, but usually they confirm the Commission's findings.

Experts suggest AliExpress will likely pay the fine, despite potential appeals. Professor Hendrik Vos of Ghent University noted that while companies often appeal, European courts typically uphold the Commission's findings. He pointed to Google's recent experience, where a multi-billion euro fine was eventually confirmed after a lengthy legal process. The delay in payment, however, can be substantial, as seen with Google's case which took years to finalize.

This action underscores the EU's commitment to enforcing its digital regulations and ensuring a safer online marketplace for consumers. The penalties aim to hold platforms accountable for the content and products they host, pushing for greater responsibility in content moderation and product verification.

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How long is difficult to say. Ultimately, you see that it never dies down. It remains on the agenda.