The European Union has imposed the largest penalty to date under its Digital Services Act (DSA), fining Alibaba-owned AliExpress €550 million (US$629 million) for failing to prevent the sale of illegal, counterfeit and unsafe products, underscoring Brussels’ increasingly assertive enforcement of rules governing global e-commerce platforms.
Following a two-year investigation launched in 2024, the European Commission concluded that AliExpress underestimated the systemic risks associated with illegal products and failed to maintain effective systems to detect, remove and prevent prohibited listings. Regulators said counterfeit goods, unsafe toys and hazardous cosmetics remained available despite repeated warnings, exposing shortcomings in product verification, content moderation and enforcement against repeat offenders.
The ruling raises compliance costs for Chinese online marketplaces operating in Europe and signals a new phase in enforcement of the bloc’s digital rulebook. It also follows the EU’s recent introduction of a €3 handling fee on low-value parcels worth less than €150, adding further pressure on the business models of cross-border retailers including AliExpress, Temu and Shein. According to the European Commission, around 4.6 billion low-value consignments entered the EU in 2025, with the overwhelming majority shipped directly from China, intensifying concerns over counterfeit goods, consumer safety and customs enforcement.
Regulators also concluded that weaknesses in AliExpress’s product-verification and brand-protection systems allowed some traders to misclassify goods and circumvent safeguards intended to prevent counterfeit products from reaching consumers. The Commission said the platform also underestimated the moderation resources needed to identify and remove illegal listings in a timely manner.
AliExpress said it has invested heavily in product safety, consumer protection and risk mitigation, but described the penalty as disproportionate. The company said it is reviewing the decision and considering legal options while continuing to strengthen its compliance framework.
The decision marks one of the most significant enforcement actions under the Digital Services Act since it came into force, signalling the European Commission’s shift from establishing digital platform rules to actively enforcing them against major online marketplaces. AliExpress must submit a corrective action plan by 20 October, after which the Commission will determine whether additional enforcement measures are warranted. The case is also expected to drive higher compliance spending across large online marketplaces as platforms invest more heavily in product verification, seller monitoring and automated risk-detection systems. The ruling reinforces the EU’s determination to hold major online marketplaces accountable for product safety and consumer protection across cross-border e-commerce.
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