The European Commission has fined AliExpress a record €550 million ($629 million) for repeatedly allowing the sale of counterfeit and unsafe products, the largest penalty ever imposed under the EU's Digital Services Act (DSA). Regulators found that the Chinese, Alibaba-owned platform had failed to adequately police listings for fake clothing, unsafe toys, dangerous cosmetics and other illegal goods, breaching its obligations as a large online platform under the DSA. Officials said AliExpress's scale was no excuse, warning that its lax oversight endangered consumers and put compliant rivals at an unfair disadvantage. AliExpress has rejected the fine as disproportionate and said it is reviewing its options, though it has not confirmed whether it will appeal.

The Commission's investigation, opened in March 2024, examined suspected DSA breaches including AliExpress's advertising and recommendation systems, and found millions of counterfeit and unsafe items remained on sale even after being flagged. It also found the platform had insufficient staff for proper oversight, with some employees given only "tens of seconds" to assess whether products met EU standards. The case follows a €200 million ($232 million) DSA fine against Temu in May for similar failings, and comes after the EU found that up to 65% of cosmetics, 63% of food supplements and 60% of personal protective equipment sold on platforms including Shein, Temu and AliExpress were non-compliant.