AliExpress hit with record €550 million EU fine: counterfeit and unsafe goods

The European Commission has hit Alibaba-owned AliExpress with a record €550 million fine under the European Union’s Digital Services Act, following an investigation opened in March 2024. According to the Commission, it’s the biggest penalty handed out under the law so far.

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Brussels says the marketplace didn’t do enough to stop counterfeit and harmful goods from circulating on the platform. That included unsafe toys, dangerous cosmetics, and other illegal products. The Commission’s view is that AliExpress wasn’t equipped for the job: too little staffing, weak monitoring, and seller-detection systems that didn’t catch enough. In some cases, listings that had already been flagged stayed live for weeks. Recommendation systems were still pushing them, too.

For people shopping on AliExpress in Europe, this matters. The DSA has been fully in force since 2024, and it gives the EU power to fine platforms up to 6% of their global annual turnover.

This comes after other DSA enforcement moves by the Commission against Temu, which was fined €200 million, and X, which was fined €120 million. Shein is also being looked at.

AliExpress says the penalty is disproportionate. The company also says it has poured significant resources into safety, risk assessment, and consumer protection, and that it’s reviewing its legal options. Brussels isn’t convinced those steps were enough.

The full decision is available on the European Commission’s website. For shoppers, the takeaway is pretty direct: if a platform makes money from millions of third-party listings, regulators expect much tighter control. That point lands even harder with Alibaba also coming off a recent $600 million U.S. settlement, according to U.S. authorities, over allegations involving illegal pharmaceuticals and related equipment.