The European Commission just handed AliExpress a €550 million fine for letting counterfeit goods, unsafe toys, and dangerous cosmetics linger on its platform. It’s the largest fine yet under the EU’s Digital Services Act, and it lands squarely on Alibaba Group’s cross-border marketplace.
What AliExpress actually did wrong
The core violation is straightforward. AliExpress failed to stop illegal and harmful products from being sold, recommended, and advertised on its platform, even after the company knew those products didn’t meet EU safety standards.
“There were a lot of counterfeit products, unsafe toys and dangerous cosmetics which stayed online for a very long time. Products were still being recommended and advertised on the platform even after it was already known that they did not meet the standards.”
That’s EU tech chief Henna Virkkunen, who made the comments ahead of the formal announcement. The European Commission’s investigation found that the platform underestimated the risks associated with content moderation. It also found that AliExpress didn’t adequately penalize repeat offenders, meaning sellers who were flagged for illegal listings could essentially keep operating without meaningful consequences.
