€550 Million Fine Imposed on AliExpress for Counterfeit Goods

AliExpress Penalized Under the Digital Services Act

According to НВ — Техно: On July 21 at 11:30 AM, the European Commission levied a €550 million fine against the e-commerce platform AliExpress for violating the Digital Services Act (DSA). This penalty, the largest ever issued by the EU under this regulation, stems from an investigation launched in March 2024. Regulators found that millions of counterfeit and hazardous products-including toys and cosmetics-were being sold on the site.

AliExpress, which is owned by the Chinese conglomerate Alibaba, failed to allocate enough staff to properly screen goods. Moderators were given only a few dozen seconds to decide whether products met EU standards. Despite numerous user complaints, millions of fake items-among them dangerous children's toys and cosmetics-remained available on the platform.

Official Reactions and Broader Implications

Henna Virkkunen, a European Commission official, stated that 'the proliferation of counterfeit clothing, unsafe toys, cosmetics, and other illegal goods shows that AliExpress has failed to meet its obligations. The platform's scale is no excuse, and the risks to buyers must be systematically addressed.'

In response to the fine, AliExpress representatives called it disproportionate, arguing: 'We disagree with the decision because it does not account for the measures we have already implemented to combat violations.' This case comes amid other industry sanctions; for instance, the EU recently fined the marketplace Temu €200 million for similar infractions.

The penalty highlights regulators' growing focus on consumer safety in the digital space. The European Union continues to enforce strict controls over online platforms, reflecting its commitment to protecting consumer rights. AliExpress's experience may serve as a warning to other companies in the sector, which must strengthen their oversight and accountability mechanisms to avoid facing comparable sanctions in the future.