The European Commission has fined AliExpress €550 million for failing to effectively combat the sale of illegal products on its platform. This is the largest penalty imposed to date under the Digital Services Act (DSA), far exceeding those levied against Temu and the social network X.
The investigation, launched in March 2024, has concluded that the Chinese e-commerce giant failed to meet its obligation to assess and mitigate the risks associated with the sale of counterfeit goods, unsafe toys, and dangerous cosmetics. Brussels believes that AliExpress does not have sufficient staff to review products and that its automated detection systems are easily circumvented.
The reasons for the sanction: lack of staff and ineffective systems
According to the Commission's report, AliExpress overestimated the capacity of its automated systems to detect and remove listings for illegal products. Human moderators had only 10 to 20 seconds to review each item, a workload that made rigorous monitoring impossible. Furthermore, the platform's recommendation and advertising algorithms actively promoted dangerous products before they were removed, further increasing consumer exposure.
Another significant flaw was that malicious sellers could circumvent controls by misclassifying their products . For example, they would place toys or cosmetics in categories with more lenient requirements, allowing non-compliant items to circulate freely. The trademark authorization system, designed to curb counterfeiting, also proved ineffective and lacked sufficient staff to verify applications.
Illegal products that remained on sale for weeks
The investigation revealed that numerous illegal products remained on sale for weeks even after being detected. From counterfeit clothing to unsafe toys and dangerous cosmetics, these items continued to appear in search results and personalized recommendations. The Commission emphasizes that this situation is not an unavoidable cost of online shopping, but a direct breach of AliExpress's obligations.
Furthermore, the platform failed to properly enforce its sanctions policy against sellers who violated the rules. Stores penalized for selling illegal products were allowed to continue operating normally, enabling repeated violations. Brussels believes these practices harm both consumers and legitimate businesses that invest in design, safety, and innovation.
AliExpress's response: it will appeal the fine
AliExpress has expressed its disagreement with the European Commission's decision and announced it will appeal the penalty in court. In a statement, the company called the fine "disproportionate" and asserted that it has cooperated constructively with EU authorities. It maintains that it has invested "considerable resources" in risk management and product safety, and that Brussels failed to consider the improvements implemented after the initial warning in 2024.
The company, owned by the Alibaba Group, insists it has complied with its obligations under the DSA and that the sanction ignores the progress made. However, the European Commission considers the measures taken so far insufficient, as systemic problems persisted until at least June 2025.
Context: the other DSA fines and the correction deadline
This fine comes on top of those previously imposed on Temu (€200 million) and the social network X (€120 million) for violations of the DSA. With €550 million, AliExpress receives the heaviest penalty to date, although the law allows fines of up to 6% of global revenue. In the case of Alibaba, which had a turnover of more than €122.000 billion last year, the legal limit would be around €7.300 billion, so the current fine falls well short.
Brussels has given AliExpress until October 20, 2026, to submit a detailed action plan to address the identified deficiencies. The Commission will assess the proposal within a month and, if it deems it insufficient, may impose further periodic sanctions. Commission Vice-President Henna Virkkunen was emphatic: "Turnover is no excuse; risks must be systematically identified and addressed to ensure consumers can shop online safely."
The fine levied against AliExpress sets a precedent for European oversight of major digital platforms, particularly those from Asia. With 193 million users in the EU, AliExpress is the largest of the three major Chinese platforms, ahead of Shein and Temu. The Commission continues to monitor Shein, while the new €3 tax on small parcels, in effect since July 2026, reinforces the pressure on this business model. The proliferation of illegal products is not a side effect of e-commerce, but rather the result of systematic non-compliance that the EU is determined to address.