The European Commission has fined AliExpress €550 million (NZ$1.074 billion) for failing to prevent the sale of unsafe and counterfeit goods. This penalty, the largest issued under the European Union’s Digital Services Act (DSA), follows a series of enforcement actions against major online marketplaces, including a €200 million (NZ$390 million) fine for Temu and a US$120 million (NZ$205 million) penalty for the social media platform X.
Regulatory Pressure and the Digital Services Act
Henna Virkkunen, the commission’s executive vice-president for tech sovereignty, security and democracy, stated that the spread of dangerous toys, counterfeit clothing, and harmful cosmetics is not an “unavoidable cost of shopping online.” According to Virkkunen, the fine is a direct result of AliExpress failing to meet its systemic risk mitigation obligations under the DSA.
Did you know? The Digital Services Act is designed to protect fundamental rights, including privacy and free speech, while preventing the spread of illegal content such as the promotion of anorexia or genocide.
AliExpress Response and Compliance Challenges
AliExpress has publicly contested the commission’s assessment. In a statement emailed to The Associated Press, the company asserted that it has invested “substantial resources” in product safety and consumer protection. The firm labeled the €550 million fine “disproportionate” and argued that it does not reflect the “significant, proactive enhancements” the platform has implemented since the DSA came into force.
The commission’s ruling stems from conduct observed until at least June 2025. Following the preliminary findings, AliExpress must now submit a comprehensive action plan by October 20. This plan is required to detail specific measures to remedy systemic risks associated with illegal products on the platform.
Global Regulatory Headwinds for Alibaba
Less than three weeks before the EU announcement, Alibaba agreed to pay US$600 million (NZ$1.027 billion) to settle a dispute with the United States government. That settlement addressed allegations that the firm facilitated the import of illegal pharmaceuticals, controlled substances, and regulated chemicals into the U.S.
Relying on “scale” as an excuse for safety failures is no longer a viable defense under current regulatory frameworks.
Future Trends in E-Commerce Oversight
Frequently Asked Questions
What is the Digital Services Act?
The DSA is a set of EU regulations designed to ensure online safety, protect fundamental human rights, and prevent the spread of illegal content or harmful products on digital platforms.
Why was AliExpress fined?
The European Commission fined AliExpress for failing to adequately crack down on the sale of counterfeit and unsafe products, identifying this as a breach of its legal obligations under the DSA.
What is the deadline for AliExpress to respond?
AliExpress is required to submit an action plan to the European Commission by October 20, detailing how it will mitigate systemic risks on its platform.
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