EU Fines AliExpress €550 Million for Selling Illegal Products

On Monday, the European Union imposed a fine of €550 million on the AliExpress platform for permitting the sale of illegal products, including unsafe toys and cosmetics.

This decision concluded an investigation launched by the EU in March 2024, which found that the platform continued to display counterfeit and non-compliant products with European safety and environmental standards, even after these products were identified as violations, contravening the Digital Services Act.

According to a statement cited by Agence France-Presse, the EU said AliExpress failed to take sufficient measures to prevent the sale of illegal products. A significant portion of these products remained available on the platform for several weeks despite detection of the violations.

The statement added that the platform "overestimated the effectiveness of its system in detecting and removing illegal products," noting that millions of violating products repeatedly reappeared on the site. Recommendation algorithms continued to present these products to users before their removal, and the platform allowed some violating sellers to continue their activities.

European Commission technology chief Hina Verkunen stated in a release that risks must be systematically identified and managed to ensure consumers can shop online safely. She urged the platform to comply with this standard and take the necessary actions.

The EU highlighted that the fine amount reflected the nature of the violations, their impact on Europeans, and the duration over which the infringements persisted.

This penalty represents the largest fine imposed so far under the EU’s Digital Services Act, which came into force in 2022 and is one of the bloc’s key regulatory frameworks overseeing major technology companies.

AliExpress criticized the fine, describing it as "inappropriate and not adequately reflective of its existing framework and significant improvements," and indicated it is considering "all options."

AliExpress is the largest Chinese e-commerce platform in the European Union, with approximately 193 million users, compared to 156 million users on Shein and about 130 million on Temu.

Under the Digital Services Act, the most popular digital platforms, including social networks and retail platforms, must assess the risks they pose and take measures to address them.

In recent years, the EU has intensified actions against what it calls unfair competition from Chinese e-commerce platforms. Measures include imposing a €3 fee on low-value parcels entering the bloc. However, Technology Commissioner Hina Verkunen emphasized that the EU does not target digital platforms based on their country of origin.