AliExpress fined $629 million in EU counterfeit goods case
The European Commission says AliExpress failed to meet Digital Services Act duties to curb unsafe and counterfeit products sold through its marketplace.
By Maya Lindqvist · Senior Technology Correspondent
3 min read
The European Commission fined AliExpress 550 million euros, or $629 million, on Monday for failing to do enough to stop unsafe and counterfeit goods from being sold on its platform. The penalty is the largest yet under the European Union’s Digital Services Act, the bloc’s online safety law.
Commission officials said the Chinese marketplace did not adequately assess and reduce risks tied to illegal products available to European consumers. Henna Virkkunen, the commission’s executive vice-president for tech sovereignty, security and democracy, said the problem included counterfeit clothing, unsafe toys, dangerous cosmetics and other harmful goods.
Virkkunen said in a statement that those risks were not an unavoidable part of online shopping, but reflected AliExpress’ failure to meet its obligations under the DSA. She added that the size of a platform does not excuse it from identifying and addressing risks in a systematic way.
AliExpress disputed the penalty in comments emailed to The Associated Press. The company said that since the DSA took effect, it has committed resources to risk assessment, product safety, consumer protection and efforts to reduce harm.
The company said it disagreed with what it called a “disproportionate fine” and argued that the decision did not properly account for its existing compliance system or improvements it said it had made. AliExpress said it was reviewing the decision and weighing its options.
Commission seeks action plan
The European Commission said the fine covers AliExpress’ conduct through at least June 2025. That month, the commission issued preliminary findings that the company had fallen short in tackling illegal products under the DSA, while also accepting commitments from AliExpress to improve its systems.
Brussels said AliExpress must now provide an action plan by Oct. 20. The plan must set out steps to remedy breaches of its duties to assess and reduce systemic risks, according to the commission.
The Digital Services Act is intended to make online platforms safer for users in the 27-country European Union. The law targets illegal or harmful content and activity, including material that violates platform rules, while also seeking to protect rights such as privacy and free expression.
The AliExpress decision follows other enforcement actions under the DSA. The commission fined online retailer Temu 200 million euros months earlier over similar breaches. Last year, Brussels imposed a $120 million penalty on X, Elon Musk’s social media platform.
The action also comes shortly after Alibaba, the Chinese tech company that operates AliExpress, agreed to pay $600 million to settle a U.S. government dispute. U.S. authorities had alleged that the Hangzhou-based company sold and imported illegal pharmaceuticals, controlled substances, regulated chemicals and pill-making equipment into the United States.
The commission’s latest decision signals continued pressure on large online marketplaces operating in Europe to police product safety and counterfeiting risks. AliExpress says it has already strengthened its controls, while EU officials say the company must provide a concrete plan to meet its legal obligations.
This story draws on original reporting from Fortune.