AliExpress fined €550 million over sale of counterfeit, unsafe products

The European Union has imposed a record €550 million ($629 million) fine on e-commerce platform AliExpress for failing to curb the sale of illegal, unsafe and counterfeit products, marking the largest penalty issued so far under the bloc’s Digital Services Act (DSA).

The European Commission announced the sanction on Monday, saying AliExpress failed to adequately assess and mitigate the risks associated with the spread of illegal products on its marketplace.

The fine is the third issued under the EU’s Digital Services Act, a landmark regulation that places stricter obligations on very large online platforms to detect and remove illegal and harmful content.

The Commission had charged AliExpress in June 2025 with breaching DSA requirements by failing to properly assess and reduce the risks linked to illegal goods sold on its platform.

What they are saying

According to the regulator, the company failed to accurately evaluate whether it had sufficient staff to review platform risks and overstated the effectiveness of its systems for detecting and removing illegal products.

The Commission also criticised AliExpress’s recommendation and advertising algorithms, saying they contributed to the spread of illegal products. It added that the platform relied too heavily on a single performance indicator to measure the effectiveness of its moderation systems.

As a result, counterfeit goods, unsafe toys and dangerous cosmetic products reportedly remained available on the platform for weeks before being removed.

The regulator further said AliExpress’s enforcement measures against offending merchants were ineffective, allowing sellers previously penalised for illegal activities to continue operating on the platform.

It also faulted the company’s mandatory “brand authorisation” programme, designed to prevent counterfeit sales, describing it as understaffed, ineffective and easily bypassed by traders selling fake products.

Get up to speed

In July last year, the EU had raised serious concerns about another Chinese e-commerce giant, Temu, accusing it of breaching key consumer protection rules under the Digital Services Act (DSA).

• In a preliminary finding, the Commission said Temu failed to properly assess the risks of illegal or non-compliant products being sold on its platform, putting millions of European consumers at risk.
• Later in May this year, Temu was fined €200 million ($232 million) by the EU for having illegal products such as dangerous baby toys and faulty chargers for sale on its platform.
• The European Commission said the company had “failed to diligently identify, analyse and assess the systemic risks” of the products and the harm they could cause to consumers.

Under the DSA, companies can be fined up to 6% of their global annual turnover for serious violations.

The €550 million sanction significantly exceeds the €200 million fine imposed on Temu in May and the €120 million penalty issued against Elon Musk’s social media platform X in December, both for DSA related breaches.

AliExpress had previously avoided a financial penalty in June 2025 after agreeing to implement measures aimed at limiting the spread of potentially illegal and pornographic content on its platform.

EU warns of consumer risks

Speaking after the decision, EU technology chief Henna Virkkunen said the platform’s shortcomings posed significant risks to consumers and businesses that comply with the bloc’s regulations.

• “This is very dangerous for consumers, unfair for companies which are complying with all our rules,” she said.

Virkkunen noted that AliExpress had 193 million users across Europe last year, compared with 156 million for Shein and 130 million for Temu.

Meanwhile, AliExpress has criticised the Commission’s decision, describing the penalty as excessive and disproportionate.

• “We disagree with today’s decision and the disproportionate fine, which does not adequately reflect our established framework and the significant, proactive enhancements we have made,” the company said in a statement sent via email to Reuters.

It added that it was reviewing the ruling and considering its legal options.

What you should know

The sanction against AliExpress comes as regulators across the globe beam their searchlight on global e-commerce platforms.

Earlier this year, the Nigeria Data Protection Commission (NDPC) said it was investigating Temu over concerns that the personal data of millions of Nigerians may have been improperly handled.

The probe was ordered by the National Commissioner and Chief Executive Officer of NDPC, Dr. Vincent Olatunji, following indications that the company processes personal information belonging to approximately 12.7 million Nigerians.