EU Imposes Record Fine on AliExpress for Digital Services Act Violations

The European Commission has imposed a record penalty of 550 million euros on AliExpress, the online retail platform operated by China's Alibaba Group, for repeated violations of the Digital Services Act (DSA). This decision follows an 18-month investigation into the company's compliance with the stringent European legislation designed to protect consumers and intellectual property rights.

According to findings by the European Commission, AliExpress failed to implement adequate measures to prevent the sale of prohibited, unsafe, or counterfeit products within the European Union. The company reportedly did not allocate sufficient personnel to monitor listings effectively, relying instead on automated systems that were unable to consistently detect or remove problematic items from its marketplace. As a result, non-compliant products, including toys with unsafe components and unauthorized branded goods, remained available to European consumers for extended periods.

Authorities highlighted multiple shortcomings in AliExpress's approach to enforcement. The company's detection system for products not authorized for sale in the EU was deemed insufficient, and compliance protocols were found to be easily circumvented by sellers. For example, problematic items could be misclassified into less scrutinized product categories, reducing the likelihood of detection by automated checks. The Commission also identified gaps in efforts to address trademark infringements and noted the absence of an effective penalty system for vendors who repeatedly violated platform rules.

The investigation was initiated in March 2024, prompted by ongoing concerns over the prevalence of hazardous items sold via AliExpress, such as children's toys containing small parts or batteries that posed safety risks. The EU's rapid alert system for consumer products has consistently flagged large numbers of such items originating from the platform, including products with inadequate safety certifications or misleading labels, such as questionable CE marks on electrical goods.

As the third case concluded under the DSA--following earlier actions against X and Temu--the fine imposed on AliExpress marks the highest to date under this regulation. However, the penalty remains significantly below the maximum possible fine, which could reach up to six percent of Alibaba Group's global annual revenue. The calculation for the fine was based solely on the company's activities up to June 2025, and only covered the period up to that date. Given Alibaba Group's reported annual turnover exceeding 120 billion euros, the imposed fine represents a fraction of the potential upper limit.

The Commission underscored that large-scale online platforms must proactively identify and mitigate risks to ensure consumer safety in digital commerce. The spread of unsafe and counterfeit goods is not viewed as an unavoidable aspect of e-commerce but rather as evidence of insufficient compliance by platform operators. In addition to the financial penalty, AliExpress is required to submit a comprehensive action plan detailing the steps it will take to address the identified regulatory breaches and prevent their recurrence. The company had previously made commitments to the Commission in June 2025 to improve its compliance mechanisms but was found to have not fully implemented necessary reforms.

AliExpress retains the right to appeal the European Commission's decision before the General Court of the European Union, which serves as the first level of judicial review within the EU. The enforcement of the DSA and the imposition of significant penalties are part of broader efforts to hold global digital marketplaces accountable for the safety and legality of products offered to European consumers.

Regulatory bodies across Europe continue to face challenges in keeping pace with the influx of potentially unsafe or non-compliant goods sold online. The case against AliExpress is expected to set a precedent for future enforcement actions, signaling the EU's commitment to robust oversight of major digital service providers operating within its jurisdiction.