According to a Reuters report by Foo Yun Chee, the European Union has imposed a record fine on Alibaba owned AliExpress for failing to adequately prevent the sale of illegal, unsafe and counterfeit products through its online marketplace. The decision marks the largest penalty issued under the bloc’s Digital Services Act (DSA) and reinforces the European Commission’s commitment to strengthening consumer protection and improving accountability among major digital platforms.
The European Commission found that AliExpress had failed to properly assess and mitigate the risks associated with the distribution of illegal products. Regulators identified shortcomings in the platform’s content moderation systems, risk assessment processes and enforcement mechanisms, allowing counterfeit goods, unsafe toys and hazardous cosmetics to remain available to consumers for extended periods.
Henna Virkkunen, Executive Vice President of the European Commission for Tech Sovereignty, Security and Democracy, said the spread of counterfeit and unsafe products is not an inevitable consequence of online shopping but reflects failures by digital platforms to comply with their legal obligations under the Digital Services Act. She stressed that major online platforms must systematically identify and address risks to protect consumers.
AliExpress said it disagrees with the Commission’s decision and considers the penalty disproportionate. The company stated that it has invested significantly in product safety, consumer protection and risk management since the Digital Services Act came into force and confirmed that it intends to appeal the ruling.
The European Commission has also directed AliExpress to implement further corrective measures and warned that additional penalties could follow if the platform fails to comply fully with the Digital Services Act. The action forms part of the European Union’s broader strategy to create safer online marketplaces, strengthen digital governance and ensure fair competition across the rapidly expanding digital economy.
