EU fines AliExpress with 550 million euros - Accused of illegal and counterfeit goods
The European Commission on Monday fined AliExpress 550 million euros for failing to adequately assess and mitigate the risks associated with the sale of illegal, unsafe and counterfeit products on its e-commerce platform.
The decision comes just days after the EU introduced a flat tax of 3 euros on parcels worth less than 150 euros, which had previously entered the bloc duty-free - a move that is expected to significantly impact the business models of Chinese online retail giants AliExpress, Shein and Temu.
The fine is the latest development in formal proceedings launched in 2024 for a possible breach of the EU's Digital Services Act. The Commission found that AliExpress failed to set up an effective system to detect and remove illegal products, while underestimating the gap between the number of human moderators available and the scale of their workload.
The platform's product compliance checks were also found to be vulnerable to abuse, with malicious merchants allegedly misclassifying products to exploit less stringent requirements.
According to the Commission's investigation, large volumes of illegal products - including unsafe toys and dangerous cosmetics - continued to circulate on AliExpress despite moderation efforts, in some cases remaining online for weeks after they had been reported.
The commission also found that AliExpress failed to properly implement its penalties policy, allowing stores selling illegal products to remain active on the platform even after receiving sanctions.
AliExpress now has until October 20, 2026, to submit an action plan outlining how it will address the Commission's concerns. The EU executive will then decide within two months of receiving the plan whether further action is required.
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