The European Union has imposed a €550 million ($628.8 million) fine on AliExpress, the largest such penalty under the bloc’s Digital Services Act (DSA). Regulators cited the platform’s failure to prevent the sale of illegal products, including unsafe toys and cosmetics, following an investigation that began in March 2024.
The penalty, announced by European Union officials, marks a significant escalation in the bloc’s efforts to regulate major online marketplaces. While the fine is substantial, it remains below the maximum threshold allowed under the DSA, which permits penalties of up to 6% of a company’s total global annual revenue.
Regulatory Findings and Safety Concerns
The investigation, which concluded recently, found that AliExpress failed to implement sufficient safeguards to prevent the distribution of counterfeit and non-compliant goods. European officials noted that many illegal items remained available on the platform for weeks, even after the company had identified them as problematic.
The European Union stated that the platform’s internal systems for detecting and removing illegal listings were not as effective as the company claimed. Furthermore, the platform allowed vendors of these non-compliant goods to maintain their accounts and continue trading.
AliExpress Response and Compliance Timeline
Despite the disagreement, the platform is now under a strict regulatory deadline. AliExpress must pay the fine and submit a detailed plan to the European Commission by October 20, outlining the specific measures it will take to rectify the identified safety and compliance failures. Failure to comply with these requirements could lead to the imposition of further periodic fines.
Market Presence in the European Union
The enforcement action highlights the outsized footprint of Chinese e-commerce giants within the European market. AliExpress currently serves 193 million users in the EU, making it the largest platform of its kind in the region.
| Platform | European Union User Base |
|---|---|
| AliExpress | 193 million |
| Shein | 156 million |
| Temu | 130 million |
European officials emphasized that the investigation was not targeted at the platform’s origin, but rather at its failure to meet the strict safety and environmental standards required under the Digital Services Act. This legislation, which became operational in 2022, requires large digital platforms to assess risks and take proactive steps to protect consumers from illegal content and products. Previous enforcement actions under the same law include a fine imposed on the platform X in December, and a fine against Temu during May, in the context of implementing the same law.
Sources: Albayan, economyplusme.com.
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