EU hits AliExpress with record 550 million euro DSA fine over illegal products

The penalty

On 20 July 2026 the European Commission imposed a 550 million euro fine on Chinese online marketplace AliExpress for violating the Digital Services Act (DSA). It is the highest penalty levied under the 2022 regulation to date, surpassing the 200 million euro fine on Temu and the 120 million euro penalty on X. The fine is calculated based on the nature and duration of the infringement, covering the years 2023 to 2025. The investigation, concluded in June 2025, found that millions of illegal products, from counterfeit clothing and unsafe toys to hazardous cosmetics, were repeatedly allowed to reappear on the platform.

How the violations occurred

The Commission determined that AliExpress failed to deploy sufficient staff to identify and remove illegal listings. Moderators were given only tens of seconds to assess each product, and the company's algorithms actively recommended unlawful goods to consumers before they were taken down. Sellers of counterfeit items exploited weak enforcement by labelling their products under categories subject to lighter scrutiny. EU Digital Commissioner Henna Virkkunen said that AliExpress's conduct endangered European consumers and was unfair to businesses that comply with the law.

The spread of counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal and harmful products is not an inevitable consequence of online shopping. It is a failure of AliExpress to comply with European rules.

AliExpress's response

AliExpress, owned by Alibaba Group, rejected the decision. The company stated that the penalty was disproportionate and did not reflect the proactive improvements it had made.

We do not agree with today's decision and the disproportionate fine. We are carefully reviewing the decision and considering all available options.

Wider regulatory pressure on Chinese platforms

The fine is part of a broader EU crackdown on low-cost Chinese e-commerce platforms. Between 2023 and 2025, the number of shipments entering the EU from China valued under 150 euros more than doubled. Since this month, a 3 euro customs duty applies to each imported product, with additional administrative fees expected by November. The Commission is also investigating AliExpress for other possible DSA breaches, including complaint handling, advertising transparency and seller traceability.

What happens next

AliExpress must submit an improvement plan to the Commission by 20 October 2026. If the plan is deemed inadequate, further fines may follow. The maximum penalty under the DSA is 6 percent of annual global turnover. For Alibaba, with revenues of roughly 130 billion euros at the time of the infringement, the ceiling would have been nearly 8 billion euros, meaning the 550 million fine represents about 0.4 percent of that cap.