The European Commission (EC) has imposed a record fine of 550 million euros ($629 million) on Chinese e-commerce giant AliExpress for allowing the sale of counterfeit and unsafe products within the bloc.
The European Commission (EC) has imposed a record fine of 550 million euros ($629 million) on Chinese e-commerce giant AliExpress for allowing the sale of counterfeit and unsafe products within the bloc.
“The distribution of counterfeit clothing, dangerous toys, harmful cosmetics and other illegal and threatening goods… constitutes a failure by AliExpress to comply with its obligations under the Digital Services Act [DSA],” the European Commission noted.
This fine is the largest in history imposed under the Digital Services Act (DSA), which requires large platforms like AliExpress (owned by China's Alibaba) to control the distribution of illegal and dangerous goods and services, Engadget writes .
In March 2024, the European Commission opened an investigation into AliExpress for suspected breaches of the Digital Services Act (DSA), in particular regarding the platform’s advertising and recommendation systems. Investigators found “millions” of counterfeit goods, unsafe toys and harmful cosmetics that remained on sale even after complaints were received. The European Commission concluded that AliExpress lacked the staff to properly monitor and that employees responsible for checking products sometimes had only “a few dozen seconds” to decide whether they met EU standards.
AliExpress called the fine disproportionate, although it did not say whether it planned to appeal. “We disagree with today’s decision and the disproportionate fine, which does not adequately reflect our existing system and the significant, proactive improvements we have made,” the platform said. “We are carefully reviewing this decision and considering all possible options.”
