The European Union on Monday fined Alibaba-owned AliExpress a record €550 million ($629 million) for failing to prevent the sale of illegal, unsafe and counterfeit products on its online marketplace, marking the largest penalty issued so far under the bloc’s Digital Services Act (DSA).
The European Commission said AliExpress failed to adequately assess and mitigate the risks associated with illegal products sold on its platform, allowing counterfeit goods, unsafe toys and dangerous cosmetics to remain available to consumers for extended periods.
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“This is very dangerous for consumers, unfair for companies which are complying with all our rules,” European Commission Executive Vice President for Tech Sovereignty, Security and Democracy Henna Virkkunen told reporters. She noted that AliExpress had approximately 193 million users in Europe last year, making its compliance with EU digital rules particularly significant.
The Commission said AliExpress underestimated the risks posed by illegal products and overestimated the effectiveness of its systems for detecting and removing prohibited listings. Regulators also criticized the platform’s recommendation and advertising systems, saying they amplified the visibility of illegal products.
According to the Commission, the company’s “brand authorization” program, intended to prevent counterfeit sales, was ineffective, understaffed and easily circumvented by sellers offering fake merchandise. The investigation also found that businesses penalized for selling illegal products were often able to continue operating on the platform.
The penalty follows a June 2025 preliminary finding that AliExpress had breached the DSA by failing to properly address systemic risks linked to illegal products. The company now has until Oct. 20 to submit an action plan outlining additional measures to comply with EU rules. The Commission said further penalties could follow if regulators determine in December that the company’s remedial measures remain inadequate.
AliExpress said it would appeal the decision, describing the fine as disproportionate.
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“Today’s decision and disproportionate fine ignores our sound risk management framework and the significant, proactive enhancements we have made,” the company said in a statement, adding that it has worked with the Commission to meet its “evolving expectations.”
The €550 million penalty surpasses the €200 million fine imposed on Chinese e-commerce platform Temu earlier this year and the €120 million penalty levied against Elon Musk’s social media platform X last year. This makes it the largest sanction issued under the Digital Services Act since the legislation took effect.
The DSA, which came into force to strengthen online consumer protections across the European Union, requires massive online platforms to actively identify and mitigate risks related to illegal content and products while increasing transparency in how their systems operate.
The action against AliExpress underscores the EU’s increasingly aggressive enforcement of digital regulations as Brussels intensifies scrutiny of major online marketplaces, particularly Chinese e-commerce platforms operating within the bloc.