AliExpress fined record $625M for failing to meet EU order requirements
The European Commission has imposed a record fine exceeding $625 million on e-commerce platform AliExpress. The penalty stems from the platform's failure to address the sale of illegal, unsafe, or counterfeit products as mandated by the Digital Services Act.
The European Commission has fined e-commerce giant AliExpress a record sum of over $625 million for failing to comply with the Digital Services Act (DSA). This penalty marks the largest fine issued under the DSA to date and is a consequence of AliExpress's alleged inability to effectively manage risks associated with illegal and counterfeit goods on its platform.
According to the Commission's findings, AliExpress did not diligently assess and mitigate the risks posed by the sale of unlawful items. Officials noted that the platform lacked dedicated teams to remove counterfeit and dangerous products and had systems that allowed malicious actors to evade detection.
The DSA requires large online platforms to take robust measures against illegal content and products. AliExpress's penalty highlights the EU's commitment to enforcing these regulations and ensuring consumer protection in the digital marketplace.
AliExpress is expected to implement corrective actions to comply with the DSA's requirements and prevent future violations.