BRUSSELS — The European Commission imposed a record €550 million ($629 million) fine on AliExpress concluding that the Alibaba-owned marketplace violated the European Union’s Digital Services Act by failing to adequately prevent the sale of illegal, unsafe and counterfeit products across its platform. The penalty is the largest issued under the Digital Services Act since the law took effect and signals a major escalation in Europe’s regulation of global e-commerce platforms.
European regulators said AliExpress failed to properly assess and mitigate risks associated with counterfeit merchandise, unsafe consumer products and illegal listings despite repeated warnings and ongoing compliance discussions. According to the Commission, investigators found weaknesses in the platform’s monitoring systems, insufficient staffing devoted to enforcement, and ineffective procedures for identifying and removing prohibited products before they reached consumers.
The Commission also concluded that some sellers were able to continue operating after violations were identified and that dangerous products—including counterfeit toys, cosmetics and consumer goods—remained available for purchase longer than regulators considered acceptable. Officials ordered AliExpress to strengthen its compliance systems while warning that additional financial penalties could follow if the company fails to fully implement corrective measures.
AliExpress rejected the Commission’s findings, calling the penalty disproportionate and announcing plans to appeal. The company said it has invested heavily in improving consumer protections, seller verification and product-monitoring systems while continuing to cooperate with European regulators as compliance expectations evolve.
The decision marks a significant milestone in the European Union’s effort to hold large online marketplaces accountable for products sold by third-party merchants. Unlike previous regulatory frameworks that primarily required platforms to respond after illegal listings were reported, the Digital Services Act requires major online platforms to proactively identify systemic risks and reduce the spread of counterfeit, unsafe and illegal products before consumers are harmed.
For businesses, the ruling could reshape how international online marketplaces operate within Europe. Companies may need to expand product verification systems, hire larger compliance teams, strengthen artificial intelligence monitoring tools and conduct more rigorous oversight of third-party sellers. Those additional compliance costs could ultimately affect merchant fees, product availability and operating expenses across the e-commerce sector.
The decision also increases regulatory pressure on other major online marketplaces. European authorities have already intensified scrutiny of several global e-commerce platforms as part of a broader effort to strengthen consumer protection, improve marketplace transparency and reduce the circulation of counterfeit goods entering the European Union.
For consumers, regulators argue the enforcement action is intended to improve confidence in online shopping by reducing the availability of unsafe products and ensuring platforms take greater responsibility for what is sold through their services. Counterfeit goods remain a significant economic issue, affecting brand owners, manufacturers, retailers and consumers while exposing buyers to potentially dangerous products that fail to meet established safety standards.
The case also highlights growing differences between regulatory approaches in Europe and other regions. While many countries continue relying primarily on post-sale enforcement, the European Union is increasingly requiring large technology platforms to prevent harmful activity before it reaches consumers. That shift is expected to influence compliance strategies for multinational technology companies operating across multiple jurisdictions.
AliExpress now faces the dual challenge of appealing the record penalty while demonstrating to European regulators that it can satisfy the Digital Services Act’s increasingly stringent compliance requirements. The outcome will likely serve as an important precedent for future enforcement actions involving global online marketplaces.
JBizNews Desk | Brussels
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