€550 Million Fine Imposed on AliExpress for Counterfeit Goods Sales

European Commission Fines AliExpress €550 Million

According to НВ — Техно: On July 21 at 11:30 AM, the European Commission levied a €550 million penalty against the e-commerce platform AliExpress for violating the Digital Services Act (DSA). The fine stems from the discovery of millions of counterfeit and hazardous items-including toys and cosmetics-being sold through the site. Regulators also cited an insufficient number of staff assigned to product screening, which led to serious compliance failures.

Investigation and Response

The probe into AliExpress began in March 2024. Investigators found that platform moderators were allotted only a few dozen seconds to review each product, a timeframe deemed wholly inadequate for ensuring consumer safety. This penalty marks the largest ever imposed under the DSA in European Union history, underscoring the severity of the issue.

AliExpress is owned by the Chinese conglomerate Alibaba. Notably, the EU had previously fined another marketplace, Temu, €200 million for similar violations. Regulators have pointed out that a significant portion of cosmetics, dietary supplements, and personal protective equipment sold on platforms like Shein, Temu, and AliExpress fails to meet European legal standards.

Henna Virkkunen, Vice President of the European Commission, commented on the situation: 'The proliferation of counterfeit clothing, dangerous toys, cosmetics, and other illegal goods demonstrates AliExpress's failure to fulfill its obligations.' She emphasized that the platform's scale cannot serve as an excuse, and the risks to buyers must be systematically addressed.

This fine is part of a broader crackdown on online platforms across the European Union as authorities work to enhance consumer protection. Regulators are actively refining legislation to curb the sale of dangerous and fake products that threaten public health and safety. In this context, it is critical for platforms to uphold rigorous product verification standards, as this directly impacts consumer trust in e-commerce.