EU Imposes Record Fine on AliExpress: €550 Million Penalty for Illegal Products
The European Commission fined AliExpress €550 million on the grounds that it failed to adequately assess and mitigate the risks related to the sale of illegal, unsafe, and counterfeit products. The decision marked the highest fine the European Union has imposed on an e-commerce platform to date under the Digital Services Act.
Deficiencies Identified in AliExpress’s Monitoring Systems
In the investigation launched in March 2024, it was determined that AliExpress had not assigned a sufficient number of employees to detect illegal products on the platform. According to European Commission sources, some employees had only 10 to 20 seconds to assess the risks posed by the products.
The Commission stated that AliExpress had overstated the effectiveness of its automated product detection systems and relied largely on a single quantitative indicator to measure moderation performance. It was also noted that the platform’s recommendation and advertising systems increased the circulation of illegal products.
Algorithmic Controls Were Easily Circumvented
It was stated that sellers were able to bypass compliance checks by placing products in incorrect categories. The mandatory “brand authorization” system used to prevent counterfeit products was reported to have failed to deliver the expected results due to insufficient staffing and ineffective controls.
As a result of these deficiencies, counterfeit clothing, unsafe toys, and dangerous cosmetic products remained on sale for weeks despite being detected. It was also reported that some sellers who had been sanctioned for violating the rules continued to operate on the platform.
Of the €550 million fine, €110 million was attributed to inadequate risk assessment, while €440 million was related to the failure to implement effective risk mitigation measures. The fine exceeded the €120 million penalty imposed on X and the €200 million sanction applied to Temu.
AliExpress Will Appeal the Decision
AliExpress described the fine as “disproportionate,” stating that it had cooperated with the European Commission, improved its risk management system, and introduced voluntary measures. The company announced that it would appeal the decision.
AliExpress, which has 193 million users in Europe, is required to submit an action plan containing compliance measures to the Commission by October 20, 2026. If the plan is found to be insufficient, additional fines may be imposed on the platform.