New Delhi—The European Union has fined Alibaba-owned e-commerce platform AliExpress 550 million euros, or about $630 million, for failing to adequately prevent the sale of illegal, counterfeit and unsafe products.
The penalty is the largest imposed under the EU’s Digital Services Act, which regulates major online platforms and strengthens consumer protections.
The European Commission said AliExpress did not take sufficient measures to stop prohibited goods, including toys and cosmetics, from being sold through its marketplace. Regulators found that some illegal listings remained available for weeks after they were identified.
Several products offered on the platform also failed to meet EU product safety and environmental standards, according to the commission.
The penalty follows an investigation launched in March 2024 under the Digital Services Act, which the EU adopted in 2022 to increase oversight of large technology and e-commerce companies.
“Risks must be identified and addressed systematically to ensure consumers can safely shop online. Today, we are holding AliExpress to this standard and request it to take action,” EU technology chief Henna Virkkunen said in a statement.
The commission said the size of the fine reflected the seriousness and duration of the violations, as well as their impact on consumers across the European Union.
The penalty exceeds previous fines issued under the law, including a 120 million euro fine against Elon Musk-owned social media platform X and a 200 million euro penalty imposed on Chinese online retailer Temu.
AliExpress called the fine “disproportionate,” saying it did not adequately account for the company’s compliance system or the improvements it has made to strengthen marketplace safety.
The company said it was considering its legal options in response to the decision. (Source: IANS)
