European Commission Imposes €550 Million Fine on AliExpress for Regulatory Breaches

The European Commission has issued a record €550 million fine against AliExpress for systemic failures to prevent the sale of illegal, counterfeit, and unsafe products. This penalty, the largest imposed under the Digital Services Act (DSA), follows an investigation into the platform’s risk mitigation, advertising transparency, and recommender systems.

Regulatory findings indicate that the platform failed to adequately staff moderation teams, resulting in insufficient review times for flagged items. Furthermore, the Commission determined that the company’s internal compliance mechanisms were easily circumvented through product mis-categorization, exacerbating the distribution of hazardous goods.

AliExpress is required to submit a comprehensive action plan by October 20 to address these identified infringements. Failure to implement sufficient corrective measures may result in additional financial penalties. The company has characterized the fine as disproportionate and is currently evaluating its legal options.