EU fines AliExpress 930 billion won for failing to block illegal goods

The European Union has imposed a hefty 550 million euro (approximately $590 million) fine on AliExpress, the online shopping platform owned by Alibaba Group. The penalty stems from the platform's alleged failure to effectively prevent the sale of illegal, counterfeit, and dangerous products.

The European Commission stated that AliExpress lacked adequate personnel and systems to assess and mitigate the risks associated with such sales. It further pointed out that the platform's recommendation and advertising systems may have inadvertently promoted the spread of illegal goods. The commission found that AliExpress's brand verification system was largely ineffective due to insufficient staffing and lax management.

According to the EU, a wide array of illicit items, ranging from counterfeit goods to unsafe toys and hazardous cosmetics, were exposed online because AliExpress failed to detect them properly. The situation was exacerbated by the fact that some vendors previously sanctioned by AliExpress continued to sell illegal products on the platform.

This action marks the third instance of the EU imposing sanctions under the Digital Services Act (DSA), which mandates large online platforms to prevent the dissemination of illegal and harmful content. Previously, Elon Musk's social media platform X was fined 120 million euros, and the Chinese shopping app Temu received a 200 million euro penalty for similar violations.

AliExpress has expressed its disagreement with the EU's decision and the size of the fine. In a statement to Reuters, the company said, "We do not agree with today's decision and the disproportionate amount of the fine," adding that it did not adequately reflect the systems and significant improvements they have proactively implemented. The platform is carefully reviewing the decision and considering all available options.

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We do not agree with today's decision and the disproportionate amount of the fine. We do not believe that the decision reflects the systems and significant improvements we have proactively implemented.