The EU has fined AliExpress €550 million for selling illegal products, including unsafe toys and cosmetics, and failing to adequately address counterfeit goods.
London, United Kingdom Jul 21, 2026 ALN: The European Union (EU) has taken a decisive stance against online retail giant AliExpress by imposing a substantial fine of €550 million for facilitating the sale of illegal products within its jurisdiction. This ruling, announced on a recent Monday, serves as a clear indication of the EU's ongoing commitment to ensuring consumer safety and adherence to regulatory standards across its digital marketplace.
The investigation into AliExpress was initiated in March 2024, following concerns about the platform's ability to adequately monitor and control the sale of counterfeit and unsafe products, including toys and cosmetics that do not meet safety regulations. The EU's findings revealed that numerous illegal goods remained accessible on the platform for extended periods, even after they had been flagged for removal. This delay in action raises serious questions about the effectiveness of AliExpress's compliance mechanisms.
Henna Virkkunen, the EU's tech chief, emphasized the importance of systematic risk identification and management in the digital marketplace, stating, "Risks must be identified and addressed systematically to ensure consumers can safely shop online. Today, we are holding AliExpress to this standard and request it to take action." This statement underscores the EU's proactive approach to consumer protection, particularly in the context of the rapidly evolving e-commerce landscape.
This fine represents the largest penalty ever imposed under the EU's Digital Services Act (DSA), which was enacted in 2022 as part of a broader strategy to regulate large tech companies and ensure accountability within the digital economy. The DSA establishes a framework that requires major online platforms to assess the risks they pose to users and implement effective measures to mitigate those risks. The act is particularly significant as it reflects the EU's ambition to create a safer and more transparent online environment for consumers.
AliExpress is not the only tech giant to face scrutiny under the DSA. Notably, Elon Musk's social media platform X was fined €120 million in December of the previous year, while the online retailer Temu received a €200 million fine in May for similar violations. These penalties highlight a growing trend of regulatory actions targeting major digital platforms, particularly those operating in the EU.
In response to the fine, AliExpress has expressed its dissatisfaction, labeling the penalty as "disproportionate" and arguing that it fails to accurately reflect the proactive measures the company has undertaken to bolster its compliance framework. The platform has indicated that it is currently reviewing its options regarding the fine, which may include legal avenues for appeal.
The EU's decision to impose such a hefty fine was influenced by several factors, including the nature of the violations, the potential impact on European consumers, and the duration of the infringements. With approximately 193 million users in the EU, AliExpress is the largest Chinese e-commerce platform in the region, followed closely by competitors like Shein and Temu, which have 156 million and 130 million users, respectively. The size and influence of these platforms amplify the importance of regulatory oversight to ensure fair competition and consumer safety.
Under the provisions of the DSA, major digital platforms are mandated to conduct thorough assessments of the risks they present to consumers and implement effective measures to mitigate those risks. The EU has intensified its scrutiny of online platforms, particularly those based in China, as part of a broader effort to ensure a level playing field within the digital marketplace and protect European consumers from potential harm.
Virkkunen reiterated that the EU's regulatory efforts are not aimed at specific platforms based on their country of origin. "We are investigating several online platforms. A significant portion of them are from the USA, many from China, and also from Europe," she stated. This inclusive approach reflects the EU's commitment to fostering fair competition and ensuring that all platforms adhere to the same standards of consumer protection.
Illegal Products Reappearing
The investigation's findings indicated that AliExpress had overestimated the effectiveness of its systems designed to detect and remove illegal products. Alarmingly, the platform reportedly allowed millions of illegal items to reappear on its site after they had been removed, often even recommending them to users before they could be taken down. This pattern of behavior raises significant concerns about the platform's commitment to consumer safety and regulatory compliance.
Moreover, the EU's investigation revealed that sellers of illegal goods could remain active on AliExpress due to deficiencies in its mandatory brand authorization system, which was criticized for being ineffective and understaffed. Such inadequacies undermine the platform's ability to prevent the sale of counterfeit and dangerous products, further endangering consumers.
The DSA grants the EU the authority to impose fines of up to six percent of a company's total global annual turnover. In 2022, Alibaba, the parent company of AliExpress, reported a global turnover of €122 billion. Consequently, the €550 million fine, while substantial, falls significantly below the maximum threshold established by the DSA.
As part of the regulatory process, AliExpress is required to pay the imposed fine and submit a comprehensive plan to the EU by October 20, detailing how it intends to address the identified breaches. Failure to comply with these requirements could result in additional penalties, further complicating the platform's operational landscape within the EU.
In addition to the fine imposed on AliExpress, the EU has recently taken further steps to combat unfair competition from Chinese retailers by implementing a €3 levy on inexpensive parcels entering the 27-nation bloc. This measure is part of a broader strategy to level the playing field for European businesses and ensure that all retailers adhere to the same standards of consumer protection and safety.
Virkkunen reiterated that the EU's actions are not targeted at specific platforms but are part of a comprehensive regulatory framework designed to enhance consumer safety and promote fair competition in the digital marketplace. As the EU continues to navigate the complexities of the digital economy, the implications of this fine and the broader regulatory landscape will likely have lasting effects on how online platforms operate within the region.
As the e-commerce sector continues to evolve, the EU's regulatory approach may serve as a model for other regions grappling with similar challenges related to consumer safety, counterfeit goods, and the accountability of digital platforms. The ongoing scrutiny of major online retailers underscores the importance of maintaining high standards of compliance and consumer protection in an increasingly interconnected global marketplace.
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