AliExpress faces a record 550 million euro fine from the EU for failing to police illegal goods on its marketplace. The Chinese e-commerce platform permitted unsafe toys, counterfeit clothing, and other prohibited products to circulate freely across its site, violating EU consumer protection and intellectual property laws.
The European Commission launched its investigation after discovering widespread violations of product safety standards. Counterfeit designer goods flooded AliExpress listings while toys failing EU safety certifications remained available for purchase. The platform failed to implement adequate controls to prevent sellers from listing banned items, despite legal obligations to do so.
This marks the largest fine ever issued under the EU's Digital Services Act, which governs how major online platforms police user-generated content and marketplace listings. The Commission determined AliExpress operated without sufficient checks on seller compliance, creating systematic risks for European consumers. The company's parent organization, Alibaba Group, controls the platform but previously claimed limited responsibility for third-party seller conduct.
AliExpress has committed to remedial action, including implementing enhanced seller verification, product screening systems, and improved takedown procedures for flagged items. The platform must establish a European compliance office and submit to regular EU audits to prevent future violations.
The ruling reflects increasing EU scrutiny of Chinese tech platforms operating within European markets. Regulators intensified focus on marketplace oversight following a series of safety incidents involving counterfeit products sold through AliExpress and similar platforms. The fine signals the Commission's intent to enforce strict liability standards regardless of company size or origin.
Alibaba did not immediately respond to requests for comment. The company has 30 days to appeal the decision.