WASHINGTON (dpa-AFX) - The European Commission has fined Alibaba's AliExpress EUR 550 million (about $629 million) for failing to stop illegal, unsafe, and counterfeit products from being sold on its marketplace. It is the third penalty issued under the EU's Digital Services Act (DSA).
Regulators said AliExpress did not properly assess or reduce the risks posed by illegal listings, allowing items such as counterfeit goods, unsafe toys, and hazardous cosmetics to remain on the platform for weeks.
The Commission also criticized the company's product recommendation and advertising systems, citing weak seller penalties and shortcomings in its brand authorization process, which it said was understaffed and easy to bypass.
AliExpress has until October 20 to submit remedial measures. If the Commission determines in December that the changes are insufficient, the company could face additional penalties.
AliExpress said it will appeal the fine, arguing it is 'disproportionate' and does not reflect the improvements the company says it has made to strengthen risk controls and meet evolving EU requirements.
At EUR 550 million, the penalty is larger than earlier DSA fines imposed on X (EUR 120 million) and Temu (EUR 200 million).
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