The European Union hit AliExpress with a record 575 million euro fine (approximately $625 million) for failing to comply with the Digital Services Act, marking the largest DSA penalty issued to date.
The fine stems from AliExpress's repeated failure to address illegal product listings and counterfeit goods on its platform following an earlier EU order. The company had been given time to remove prohibited items and implement enforcement measures, but regulators found the platform continued hosting counterfeit merchandise, including fake luxury goods and products violating intellectual property rights.
The Digital Services Act requires large online platforms to take responsibility for illegal content and products sold through their services. AliExpress, designated as a "very large online platform" under DSA rules, faced obligations to swiftly remove prohibited listings and demonstrate compliance through transparent reporting.
EU regulators documented that AliExpress failed to adequately police its marketplace. The company did not establish sufficient systems to identify and remove counterfeit items before they reached consumers. This oversight represents a systematic failure rather than isolated lapses.
AliExpress expressed shock at the penalty, suggesting the company believes it made good-faith efforts toward compliance. The firm stated it has invested in systems to combat illegal content and cooperates with authorities. However, EU investigators determined these measures fell short of legal requirements.
This fine exceeds previous penalties issued under the DSA. Meta faced a 390 million euro penalty in 2024 for transparency failures. Amazon received a 746 million euro fine for competition violations, but the AliExpress penalty represents the largest DSA-specific sanction.
The case reflects the EU's aggressive enforcement posture toward online marketplaces. Regulators increasingly hold platforms accountable for third-party seller conduct, reversing the hands-off approach that characterized early internet regulation. AliExpress now faces pressure to overhaul its compliance infrastructure or face escal