AliExpress fined record €550m by EU for illegal goods sales
The European Commission has imposed a record €550 million fine on Chinese e-commerce giant AliExpress for failing to prevent the sale of illegal and unsafe goods on its platform.
Chinese e-commerce giant AliExpress has been fined €550 million by the European Union for allowing the sale of illegal and unsafe products, including counterfeit clothing and dangerous toys, on its platform. The European Commission stated that AliExpress failed to diligently assess the risks associated with illegal goods.
An investigation revealed that AliExpress's systems for detecting illegal products were ineffective. Many illicit items were not flagged, and those that were identified often remained on the site for weeks. The commission also found that AliExpress did not properly enforce penalties against traders selling illegal merchandise, and its compliance checks could be easily bypassed.
AliExpress, owned by Alibaba, serves 193 million users in the EU. This fine is the largest issued under the Digital Services Act, a regulation that mandates tech companies to take greater responsibility for countering illegal content. While the maximum penalty can reach up to 6% of a company's global revenue, this fine is considerably less.
The company expressed surprise and disagreement with the decision, calling the fine "disproportionate." AliExpress stated it has invested substantially in risk management and consumer protection and plans to appeal the ruling. The company must pay the fine and present a plan by October 20 outlining corrective actions against the identified breaches.