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AliExpress hit with record $625M fine after failing to make EU-ordered fixes
The European Commission has fined AliExpress more than $625 million (€ equivalent), the largest penalty issued to date under the EU's Digital Services Act, after the company failed to make fixes it had been ordered to implement in June 2025. Investigators found that AliExpress had not properly assessed or mitigated the risks of illegal, unsafe or counterfeit products being sold on its platform, and that its systems even helped surface such items to shoppers, making the case significant for how the EU polices large online marketplaces.
The Commission said AliExpress lacked dedicated staff to remove dangerous or counterfeit listings, with moderators sometimes given only "tens of seconds" to review flagged products, and that millions of removed items reappeared online, in some cases for over a month. Sellers could dodge checks simply by miscategorising goods, while the platform's brand-authorisation and recommendation systems were found to be ineffective and to actively amplify illegal products, including unsafe toys and dangerous cosmetics. The fine dwarfs earlier DSA penalties against X (nearly $140 million) and Temu (more than $225 million); AliExpress says it is "surprised" by the "disproportionate" decision and intends to appeal.
In short
- EU fines AliExpress over $625 million, its largest DSA penalty yet
- Company failed to fix risks flagged in a June 2025 compliance order
- AliExpress calls the fine disproportionate and plans to appeal
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The European Commission has clear authority and responsibility to enforce the Digital Services Act. When AliExpress was given explicit orders and failed to comply within months, penalties are justified to protect consumers from genuine harms—counterfeits, unsafe toys, dangerous cosmetics cause real damage. The investigation documented systematic failures: inadequate staffing, review times measured in tens of seconds, millions of removed items reappearing, and systems that amplified rather than suppressed illegal products. This represents serious non-compliance, and a substantial fine reflects both the scale of operations and the gravity of the breach.
The case against
Online marketplaces face unprecedented technical challenges moderating millions of daily listings, and perfection is operationally unrealistic. Whilst AliExpress may have fallen short of ideal standards, the critical question is proportionality: whether a £625 million penalty is reasonable for compliance shortfalls or whether it exceeds what is necessary to encourage improvement. The company claims good-faith efforts toward compliance, and comparisons to other platforms' fines may not account for different business models and operational complexities. A fair process should allow challenge to whether such an extraordinary penalty reflects measured enforcement rather than punitive excess.
Explained simply
The European Union introduced the Digital Services Act in 2022 to hold large online marketplaces responsible for what is sold on their platforms. The law focuses particularly on illegal, unsafe and counterfeit goods that can reach vulnerable people, including children. AliExpress is a major Chinese-owned online marketplace where hundreds of millions of people buy from independent sellers worldwide.
Online marketplaces like AliExpress are tricky to regulate because of the sheer number of sellers operating with minimal traditional oversight. Products can be listed with false descriptions or be counterfeit, and dangerous items can spread widely before anyone notices. The Digital Services Act requires platforms to have systems in place to identify and remove such goods, treating the marketplace itself as responsible for what appears on it.
This case matters because it shows the EU is willing to issue substantial penalties to enforce these rules. It also signals that having moderation systems alone is insufficient; platforms must prove those systems actually work at keeping harmful products off their sites.