The European Commission fined AliExpress a record €550 million for failing to properly manage illegal and unsafe products on its online platform.
AliExpress has been fined a record €550 million by the European Commission for failing to diligently assess the risks of illegal, unsafe, or fake goods on its platform. The penalty is the highest ever imposed under the Digital Services Act, which requires tech giants to actively counter harmful content. The two-year investigation revealed that the company's detection systems failed to flag many illegal products, while others remained on the site for weeks after being identified. EU tech chief Henna Virkkunen stated that the spread of counterfeit clothing and unsafe toys is a failure by AliExpress to comply with its legal obligations. AliExpress, owned by the Chinese conglomerate Alibaba, expressed surprise at the ruling and called the fine disproportionate. The company stated it would appeal the decision, noting that it invests substantial resources into risk management and consumer protection. Under the ruling, the company must pay the fine and submit a corrective action plan by October 20.