EU imposes record $625 million fine on AliExpress for DSA breaches
The penalty, the largest under the Digital Services Act, follows the platform's failure to implement ordered fixes regarding illegal and unsafe goods.
The European Commission has imposed a record $625 million fine on AliExpress for failing to comply with the Digital Services Act (DSA), marking the largest penalty issued under the legislation to date. The ruling follows the platform’s failure to implement ordered fixes regarding the sale of illegal, unsafe, and counterfeit products, including dangerous toys and cosmetics. EU officials stated that the scale of the platform does not exempt it from compliance obligations.
The Commission found that AliExpress inadequately assessed risks, allowed bad actors to evade detection through miscategorisation, and used recommender systems that exacerbated the spread of illegal goods. Officials noted that the platform failed to staff dedicated teams for removing counterfeit and dangerous items, with some content moderators given only tens of seconds to evaluate flagged products. As a result, millions of products reappeared online after being flagged for removal, sometimes remaining active for longer than a month.
Bad actors could circumvent safeguards by miscategorising products to reduce checks, and the e-commerce site’s mandatory brand authorisation system was found to be ineffective and understaffed. The EC noted that AliExpress relied on a single quantitative metric to gauge system effectiveness, which did not properly measure the extent of harm. In June 2025, AliExpress was ordered to bring its platform into compliance with the DSA but failed to make the necessary changes.
The fine dwarfs prior penalties issued under the DSA. X was fined nearly $140 million in December 2025, and Temu was fined more than $225 million. EU tech chief Henna Virkkunen stated that one in five Europeans shop monthly at retail sites like AliExpress, Temu, and Shein. She emphasised that the spread of counterfeit clothing, unsafe toys, and dangerous cosmetics is not an unavoidable cost of shopping online but a failure by AliExpress to comply with its obligations.
AliExpress has expressed surprise at the fine and plans to appeal, describing the penalty as disproportionate. The company argued that the EC ignored its sound risk management framework and significant proactive enhancements. It noted that its EU market is substantially smaller than its China market and that it invests substantial resources in risk assessment and mitigation. However, EU officials maintained that risks must be identified and addressed systematically to ensure consumers can safely shop online.
