DistantNews
Support us
🇮🇩 Indonesia /Economy & Trade

AliExpress Hit with Record EU Fine Over Illegal Goods

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • AliExpress faces a record €550 million fine from EU regulators for failing to curb illegal and counterfeit goods on its platform.
  • The EU's Digital Services Act targets large online platforms, with AliExpress being the latest fined after Temu and X.
  • AliExpress plans to appeal the

European Union regulators have imposed a record €550 million ($629 million) fine on AliExpress, accusing the e-commerce giant of failing to adequately address the sale of illegal, unsafe, and counterfeit products.

The European Commission declared the fine, the largest ever under the Digital Services Act (DSA), a consequence of AliExpress's "failure to comply with its obligations." Vice President Henna Virkkunen stated that the proliferation of fake clothing, dangerous toys, and harmful cosmetics is not an unavoidable aspect of online shopping but a direct result of the platform's non-compliance.

The spread of counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal and harmful products is not an unavoidable cost of shopping online - it is a failure by AliExpress to comply with its obligations under the Digital Services Act.

— Henna VirkkunenEuropean Commission Vice President Henna Virkkunen explaining the rationale behind the fine.

AliExpress, owned by Alibaba Group, has until October 20 to submit a plan to rectify the identified shortcomings. Failure to do so could result in further penalties. The company has expressed its intent to appeal, calling the fine "disproportionate" and excessive, and asserting that the EU's decision "ignores our sound risk management framework and the significant, proactive enhancements we have made."

The EU's decision "ignores our sound risk management framework and the significant, proactive enhancements we have made."

— AliExpress spokespersonAliExpress's response to the EU's decision, asserting its risk management efforts.

Despite previous agreements a year ago to tighten controls, the Commission found that AliExpress continued to allow traders selling illegal products to operate, lacked sufficient staff for effective review of listings, and sometimes promoted illegal items before their removal. The DSA, designed to regulate online services, has previously led to fines for platforms like Temu and X.

With 193 million users in the EU, AliExpress is a dominant player in the region, surpassing competitors like Shein and Temu in user numbers. The EU's action highlights its commitment to enforcing digital regulations on major online platforms operating within its bloc.

One in five Europeans say they shop once a month from Shein, Temu and AliExpress.

— Henna VirkkunenEuropean Commission Vice President Henna Virkkunen highlighting the user base of major e-commerce platforms in the EU.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog