Key facts
- The EU fined Alibaba's AliExpress €550 million for failing to stop the sale of illegal and harmful products.
- This is the largest penalty issued under the Digital Services Act.
- AliExpress must meet an October deadline to address illegal product sales or face further sanctions.
The European Commission has imposed a record 550 million euro ($629 million) fine on Alibaba's e-commerce platform, AliExpress, for failing to adequately address the sale of unsafe and counterfeit products. This penalty marks the largest fine ever levied under the EU's Digital Services Act (DSA). The commission stated that the spread of illegal goods is a failure by AliExpress to comply with its obligations, emphasizing that scale is not an excuse for systemic risk assessment and mitigation failures. AliExpress has been given until October 20 to submit an action plan to remedy the breach. The DSA aims to create a safer online environment by holding platforms accountable for illegal content and products. This action follows a 200 million euro fine against Temu and a $120 million penalty against X for similar violations. AliExpress stated it is committed to its obligations and has invested in risk assessment and consumer protection, but is carefully reviewing the decision and considering its options.