AliExpress to appeal record EU fine over illegal and unsafe products

AliExpress will appeal a record €550 million fine imposed by the European Union for failing to adequately prevent the sale of illegal, unsafe and counterfeit products. EU regulators said the company breached the Digital Services Act and have given it until October 20 to submit a compliance plan. The case is part of the bloc's wider crackdown on major technology companies.

Chinese online shopping platform AliExpress has announced plans to appeal a record €550 million ($629 million) fine imposed by the European Union after regulators found the company failed to adequately prevent the sale of illegal, unsafe and counterfeit goods on its marketplace.
The penalty is the largest ever issued under the European Union's Digital Services Act (DSA), highlighting the bloc's growing determination to hold major technology companies accountable for protecting consumers online.
AliExpress, which operates under China's Alibaba Group, described the fine as "disproportionate" and said it intends to challenge the decision through the appropriate legal channels.

WHY THE EU FINED ALIEXPRESS

The European Commission said its investigation found that AliExpress did not do enough to stop the sale of counterfeit clothing, unsafe toys, dangerous cosmetics and other prohibited products on its platform.
European Commission Executive Vice-President Henna Virkkunen said consumers should not be exposed to illegal or harmful products simply because they shop online.
She argued that preventing such products from reaching customers is a legal responsibility under the Digital Services Act.
The Commission concluded that AliExpress failed to fully meet those obligations.

WHAT HAPPENS NEXT

Although AliExpress plans to appeal the ruling, the company must still comply with the European Commission's enforcement process.
The platform has until October 20 to submit a comprehensive action plan outlining how it will address the violations identified by regulators.
EU authorities will review the company's proposals and determine whether they are sufficient.
Failure to fully comply could expose AliExpress to additional sanctions or further financial penalties.

PREVIOUS EFFORTS FAILED TO SATISFY REGULATORS

The European Commission noted that AliExpress had already agreed last year to strengthen controls against illegal and potentially dangerous products, including medicines and dietary supplements.
However, regulators concluded that those measures did not adequately address broader concerns regarding consumer protection and marketplace oversight.
The latest decision suggests the EU expects online marketplaces to play a far more active role in monitoring products sold through their platforms.

DIGITAL SERVICES ACT TARGETS BIG TECH

The Digital Services Act is one of the European Union's most significant technology regulations.
The law requires major online platforms to identify and reduce risks associated with illegal products, harmful content and consumer fraud.
It places additional obligations on very large online platforms because of their influence over millions of users.
According to EU figures, AliExpress currently serves about 193 million users across the bloc, making it the largest Chinese e-commerce platform operating in Europe.
It has a larger European user base than fellow Chinese retailers Shein and Temu.

EU TIGHTENS SCRUTINY OF ONLINE PLATFORMS

The action against AliExpress forms part of a broader campaign by the European Union to enforce the Digital Services Act.
Earlier this year, Chinese online retailer Temu was fined €200 million over similar concerns involving unsafe and non-compliant products.
Last year, social media platform X, owned by Elon Musk, was also fined for violating the Digital Services Act.
The European Commission says these enforcement actions demonstrate that all major digital platforms, regardless of where they are based, must comply with European consumer protection laws.

WHY THIS MATTERS

The record fine signals that the European Union is becoming increasingly aggressive in regulating global technology companies.
For online retailers, the decision reinforces the need for stronger product screening, improved seller verification and faster removal of illegal goods.
For consumers, regulators say stricter enforcement should improve confidence that products purchased through major online marketplaces meet established safety standards.
The outcome of AliExpress' appeal could also shape how future Digital Services Act cases are handled across the European Union.