AliExpress fined €550 million, the EU's largest DSA penalty, for failing to block counterfeit and unsafe goods

Record penalty under DSA

The European Commission has fined Chinese e-commerce platform AliExpress €550 million, the highest penalty yet under the Digital Services Act (DSA). EU tech chief Henna Virkkunen said the platform failed to curb the spread of counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal products. AliExpress, which belongs to the Alibaba Group and has 193 million users in the EU, had already agreed a year ago to tighten controls on illegal goods, but the Commission found those measures insufficient.

The spread of counterfeit clothing, unsafe toys, dangerous cosmetics and other illegal and harmful products is not an unavoidable cost of shopping online – it is a failure by AliExpress to comply with its obligations under the Digital Services Act.

How AliExpress failed

The EU investigation, opened in March 2024, found systemic shortcomings. AliExpress allocated insufficient staff to review potentially illegal listings; inspectors sometimes had just 10 to 20 seconds per product, a senior Commission official said. Despite detection, illegal products remained on the platform for several weeks. Nearly 15 million illegal products were still recommended to EU users before removal. The company’s algorithms even actively promoted them to shoppers.

Sellers could easily circumvent controls by mislabelling product categories to receive lighter scrutiny. The platform’s mandatory brand authorisation system proved ineffective, allowing counterfeiters to bypass it easily. The Commission also found that traders selling illegal goods often went unpunished and were allowed to continue operating.

Almost 15 million banned products were recommended to users on the platform.

AliExpress pushes back

AliExpress called the fine disproportionate and said it would consider all available options, including an appeal. The company stated that the decision did not reflect its sound risk management framework nor the proactive improvements it had made, and that it had worked with the Commission to meet evolving expectations. Alibaba Group recorded revenue of roughly €122 billion in 2025.

We disagree with today's decision and the disproportionate fine. It ignores our sound risk management framework and the significant, proactive enhancements we have made.

Wider crackdown on Chinese platforms

The penalty follows a €200 million fine against rival Temu in May, also under the DSA, for safety violations including baby toys with dangerous chemicals and fire-prone charger cables. Another investigation into Shein has been running since February 2026. Virkkunen noted that one in five Europeans shops monthly on Shein, Temu or AliExpress.

Efforts to stem the flow of illegal goods include a new €3 customs tax on every non-EU parcel introduced at the start of July. Early data from Liège, a major European e-commerce hub for Chinese shipments, shows a 40% drop in parcel volume during the first week of July. Still, more than 10 million small packages arrive in Europe from China each day.

What happens next

AliExpress has until October 20, 2026 to submit a satisfactory remedy plan. If it fails to address the Commission’s concerns, further periodic fines may be imposed. The EU is also examining additional areas: complaint handling, transparency of advertising shown on the platform and traceability of traders. A separate probe into Shein remains ongoing, and France has warned of a possible full ban over the platform’s dissemination of a child-like sex doll.