Henna Virkkunen announced a record €550 million fine for AliExpress after the retailer failed to curb the sale of illegal and unsafe products.

Henna Virkkunen, the European Commission's executive vice-president, announced a record €550 million fine for AliExpress due to the retailer's failure to diligently assess risks associated with illegal, unsafe, and counterfeit goods. The penalty represents the largest fine ever imposed under the Digital Services Act, which requires large online platforms to manage harmful content and protect consumer rights. The European Commission determined that AliExpress's detection systems functioned improperly, allowing many illegal products to remain on the site for weeks without being flagged. While the company has 193 million users in Europe, the commission noted that scale is not an excuse for failing to identify risks systematically. AliExpress, owned by the Alibaba Group, stated that the fine is "disproportionate" and does not reflect the company's proactive enhancements to its risk management framework. The retailer plans to appeal the decision. By October 20, AliExpress must submit a formal action plan to remedy the breaches, or it may face further penalties from the commission.

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