AliExpress faces a €550 million fine from the European Commission for breaching the Digital Services Act. The platform failed to prevent illegal, unsafe, and counterfeit products from circulating on its marketplace, regulators determined.
The DSA, which took effect in 2024, requires large online platforms to police their own marketplaces and reduce the spread of illegal goods. AliExpress did not implement adequate safeguards. The Commission found the Chinese e-commerce giant neglected its obligations under Article 24 of the regulation, which mandates that platforms take proportionate action to address illegal content and products.
This marks one of the EU's first major enforcement actions against a major marketplace under its new digital rulebook. The fine demonstrates Brussels' willingness to penalize platforms that fail to meet compliance standards, even when those platforms operate across borders.
AliExpress operates as a low-cost marketplace connecting Chinese sellers with European consumers. Counterfeit goods, knockoffs, and unsafe products have long plagued the platform. The Commission's decision signals that size and scale offer no protection from enforcement under the DSA.
The ruling carries broader implications for other marketplaces. Amazon, eBay, Shopee, and other platforms now face clear expectations about policing illegal goods. Regulators will measure compliance against demonstrable risk reduction, not merely token efforts or reactive complaint handling.
AliExpress can appeal the fine. The company has not yet announced whether it will contest the decision or commit to specific operational changes to comply with the DSA.
This enforcement action reflects the EU's aggressive approach to regulating Big Tech platforms through baseline rule-setting rather than sector-by-sector negotiation. The DSA creates a level playing field where all marketplaces must meet identical standards for consumer protection and legal compliance.